Canadian Uranium Corp. has entered into an agreement to acquire a 100% interest in the Clark Lake uranium exploration project in Saskatchewan’s Athabasca Basin for $90,000 in cash and 900,000 common shares.

The property covers approximately 3,265 hectares and sits roughly 8 km north of Uranium City within the historic Beaverlodge district. Under the terms of the Clark Lake Agreement with Bromell Mining Inc., Canadian Uranium will also grant a 2% net smelter returns royalty upon commercial production, which can be reduced to 1.5% for a $1,500,000 payment.

Concurrently, the company has entered into a new option agreement with Doctors Investment Group Ltd. to earn a 100% interest in the renamed Castle South project, formerly known as Cable Lake. The updated agreement replaces previous terms that required an aggregate of $1,250,000 to acquire an 80% interest. Under the new structure, Canadian Uranium can secure the full 100% interest by paying $1,000,000 in cash across scheduled instalments and incurring $2,000,000 in exploration expenditures over four years.

Initial consideration under the Castle South agreement requires Canadian Uranium to issue 250,000 common shares within 10 days of Canadian Securities Exchange approval. The company must also pay $100,000 and complete $300,000 in exploration work on or before the first anniversary of the agreement.

Both transactions remain conditional upon receipt of all necessary regulatory approvals, including acceptance by the Canadian Securities Exchange. Consideration shares issued under both agreements will be subject to a four-month resale restriction.

“The addition of Clark Lake to our strategic portfolio adds yet another asset in the Athabasca Basin, the most prolific uranium jurisdiction in the world, without adding to our company's burn rate. This transaction reflects the disciplined approach we continue to take as we build out our portfolio. I want to recognize the dedication of our entire team, who worked tirelessly through the summer preparing the company for its next growth phase. We're also very pleased with the new terms secured on Castle South, which as well further strengthens our every growing 100% focused Uranium portfolio”

— Geoff Balderson, CFO

Regulatory acceptances from the Canadian Securities Exchange remain pending for both the Clark Lake acquisition and the New Castle South Option Agreement.

Read the full announcement: Canadian Uranium Announces Acquisition Of 100% Interest In Clark Lake Property In The Athabasca Basin And Other Corporate Updates