Athabasca Uranium has signed an agreement with an arm's-length vendor, through which it has an alternative to earn total interest in the Hodges Lake property in northeast Saskatchewan.
The location of Hodges Lake property is on the eastern margin of the Athabasca Basin, the main uranium-producing area in the globe. The property is adjacent to the McGregor Lake project of Athabasca that is nearby Denison's Moore Lake deposit.
While closing the agreement, Athabasca will pay $25,000 and issue 600,000 common shares to the Vendor to earn a 100% interest in the property and by filing submits $3,500,000 in qualified exploration estimation credits for the property or for other properties of Athabasca, which is under option in its McGregor Lake project in four years. The Vendor has been awarded 1% net smelter return royalty that may possibly be purchased by Athabasca for $1,500,000.
The acquisition of Hodges Lake property is considered to be the second of three tactical acquisitions. The Hodges prospect is a part of the overall McGregor Lake project and a significant component of the development plans for this area.. The company has confirmed the immediate purchase of Hodges property through the initial results of latest 3,246-hectare Z-TEM survey by the company.
Generally, the southern area of current 24,000-hectare Project is dictated by a strong magnetic northeasterly striking trait. Numerous conductors having several kilometres in length has been found in the north. Conductor E is present at the northern edge of a magnetic feature and its northwesterly strike cuts the primarily northeasterly magnetic features. Two conductors, F and G, signify the southern area of the Moore Lake Complex.
Source: http://www.athabascauranium.com/