Minerals explorer Atha Energy announced that it would buy Latitude Uranium and 92 Energy to create a new uranium exploration company with assets spread across Canada’s three uranium jurisdictions.
The transaction would create a company that would own “one of the most complete portfolios of uranium assets” in the sector, said CEO Troy Boisjoli, noting that it came at a time when demand for new uranium supply was on a rise.
The combined company will have exposure to 7.1-million acres of exploration acreage, representing the biggest exploration portfolio in some of the highest-grade uranium districts.
Latitude is an exploration company, listed on the CSE, focused on the Angilak uranium project, in Nunavut, and the CMB project, in Newfoundland and Labrador.
92E is an exploration stage uranium company listed on the ASX, focused on exploration of its nine uranium exploration projects all located within the Athabasca Basin region of Canada.
The transactions add to Atha’s exposure to the expansion of the underexplored Angilak project, which has a resource of 43-million pounds of uranium oxide (U3O8) with expansion potential in every direction, ranking among the highest grade uranium deposits globally outside of the Athabasca basin.
Atha will also gain entry to Labrador’s prolific Central mineral belt through the CMB uranium project, which hosts an underexplored historical resource of 14-million pounds of U3O8 and is located adjacent to Paladin Energy’s Michelin deposit.
The acquisitions add exposure to the Gemini discovery, with significant expansion and discovery upside potential within the Athabasca Basin’s newest discovery corridor.
“By combining highly complimentary exploration assets from across the exploration risk curve in top-tier Canadian mining jurisdictions, we believe the combined entity will own one of the most complete portfolios of uranium assets in the entire sector and are thrilled to be able to leverage the combined team’s technical and financial resources to maximize the value of this opportunity,” said Boisjoli.
The combined company will be fully funded with C$55-million in cash.
Further, Atha has announced a capital raising of A$14-million in a private placement.