Critical One Energy Inc. has reclaimed a 100 percent interest in the Kenora Property in northwestern Ontario after American Atomics Inc. terminated its mineral property option agreement without earning an interest in the project.

The property is held through the company’s wholly-owned subsidiary, 2160083 Ontario Inc. During prior transactions concerning the option agreement, the company operated under the name Madison Metals Inc., while American Atomics was known as Great Northern Energy Metals Inc.

Under the original May 2023 agreement, as amended in May 2024, American Atomics held an option to earn a 60 percent interest in the project by performing exploration activities and minimum expenditures. However, American Atomics terminated the arrangement effective May 3, 2026, ending the earn-in process before earning any interest.

Following the termination, Critical One reviewed project records and determined that unpatented mining claim 531620, which forms part of the property, was allowed to lapse while under the control of American Atomics. The company attributes the lapse to a failure by American Atomics to perform required assessment work. That claim has since been staked and registered by an unrelated third party and is no longer capable of being re-staked or transferred back to the company.

In response to the default, Critical One has delivered a written demand to American Atomics seeking compensation for the breach of the option agreement, damages for the loss of the lapsed claim, and the return of all geological information and financial backup pertaining to the property. The company will be seeking damages and pursuing legal action against American Atomics for breach of the option agreement and the loss of unpatented mining claim 531620.

Additionally, American Atomics advised the company that it staked ten unpatented mining claims within the area of common interest established under the option agreement. Under the terms of the agreement, Critical One is entitled upon termination to demand the transfer of those claims free of encumbrances and for no further consideration. Critical One Energy Inc. intends to enforce its entitlement to claims staked within the area of common interest, including by court application if necessary, and has reserved all rights and remedies available under the agreement and at law while it pursues recovery.

Read the full announcement: Critical One Energy Provides Update on Kenora Property and Claim Against American Atomics Inc.