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Cosmos Exploration is set to acquire a majority stake in the Fenix uranium project located in Nunavut, Canada.

The junior explorer has struck a conditional agreement to earn an 80 per cent interest in the project located in the Thelon Basin, which Cosmos described as “the next emerging high grade uranium mining district”.

“Cosmos has been searching for an attractive uranium opportunity for some time now and believes this to be a standout acquisition in a world-class, high-grade uranium province,” Cosmos executive chairman Jeremy Robinson said.

Cosmos said the Thelon Basin region hosts unconformity uranium deposits, which are extremely rich and known to be the highest grade globally. On average, the grade of unconformity uranium deposits equals about one per cent, equating to 20 pounds per tonne.

Unconformity uranium deposits have only been identified in the Thelon Basin, the Athabasca Basin in Saskatchewan, Canada, and the Greater McArthur Basin in the Northern Territory. Cosmos said the Thelon Basin region has historically seen less exploration than the other two renowned regions.

While there hasn’t been a lot of drilling completed at the Fenix project, Cosmos said previous drilling has returned an intercept of 3.9 metres at 0.2 per cent uranium, including 0.4 metres at 0.7 per cent uranium.

“The presence of high-grade boulders and historic intercepts indicates that there is likely a deposit nearby. Cosmos looks forward to progressing this project with all its stakeholders this field season just approaching in what is a resurgent uranium market,” Robinson said.

To earn the option to earn into the Fenix project, Cosmos will pay $C50,000 in cash and $C100,000 in over 2 million fully paid ordinary shares upfront.

To earn its 80 per cent stake in the Fenix project, the company must spend $C1 million on exploration within a three-year period, and will need to pay a further $100,000 in cash and issue another $100,000 worth of shares.

Cosmos has received firm commitments for a $C1.01 million placement at $C0.004 per share to support the acquisition.