IsoEnergy has officially signed off on a contribution agreement with Purepoint Uranium Group Inc to create a Joint Venture for the exploration and development of a portfolio focused on uranium properties across northern Saskatchewan’s Athabasca Basin.
According to certain reports, both the companies will contribute assets from their respective portfolios to the Joint Venture, which will consist of 10 projects and cover more than 98,000 hectares in the east side of the Athabasca Basin. At the same time, they will collectively leverage their respective expertise to capitalize on the significant potential of these properties.
More on the same would reveal how this Joint Venture will include IsoEnergy’s Geiger, Thorburn Lake, Full Moon, Edge, Collins Bay Extension, North Thorburn, 2Z Lake, and Madison Projects. Beyond that, it will include Purepoint’s Turnor Lake and Red Willow Projects.
Next up, the effort will conceive a complimentary and prospective ground covering the Larocque Trend with strong discovery potential. You see, the Larocque Trend is an important regional structure that hosts the world-class Hurricane deposit and other notable high-grade occurrences, such as those on Cameco/Orano’s Dawn Lake joint venture. Furthermore, it extends onto the Turnor Lake and Full Moon Projects, positioning the Joint Venture along a proven corridor for uranium mineralization, a corridor where further discoveries could be expedited.
“Together, the Joint Venture projects consolidate a large land position immediately to the east of the Larocque East project, which includes several kilometers of the highly prospective Larocque trend. Purepoint has proven itself an exceedingly capable operator and the Joint Venture will allow us to have several of our highly prospective projects advanced, while remaining focused on dual priorities of exploring and advancing the Larocque East project, host to the high-grade Hurricane Deposit, and restarting our past producing uranium mines in Utah,” said Philip Williams, CEO and Director of IsoEnergy.
Moving on, the Joint Venture will also create strategic synergy and strengthened positioning through equity participation. Here, IsoEnergy will subscribe for $1.0 million in concurrent equity financing of Purepoint. Leveraging this very equity stake, the company will gain exposure to Purepoint’s other highly prospective exploration projects in the Athabasca Basin, including Hook Lake which previously intersected an impressive 10 meters at 10.3% U₃O₈. On the other hand, Purepoint will benefit from IsoEnergy’s financial and technical support, enabling both companies to work collaboratively to accelerate project development and drive long-term success.
As for the initial ownership structure and operating terms, IsoEnergy will hold a 60% interest in the Joint Venture, while Purepoint will hold the other 40%. Having said so, each party has the option to adjust this ownership to 50/50 within six months through the exercise of mutually exclusive put/call options.
Finally, the ownership interests of each company are subject to standard dilution if a party fails to contribute to approved Joint Venture programs or expenditures. However, assuming either party’s interest is reduced to 10% or less, it will have to relinquish its entire interest in exchange for a 2% net smelter royalty (NSR) on the Joint Venture properties.
“With this Joint Venture, the majority of Purepoint’s most significant projects are now being advanced within partnerships alongside some of the uranium sector’s strongest players. This collaboration underscores the confidence our partners, including Cameco, Orano, Foran Mining and now IsoEnergy, have in the potential of these projects, and it further solidifies Purepoint’s position at the forefront of uranium exploration in the Athabasca Basin. By combining forces and pooling resources, we are accelerating exploration efforts and setting the stage for potential large-scale discoveries that can meet the growing demand for clean energy,” said Chris Frostad, President and CEO of Purepoint.
Among other things, we ought to mention that Purepoint will serve as the operator during the exploration phase of the Joint Venture properties. Upon advancement into the pre-development phase, IsoEnergy will take up operational control of the Joint Venture properties.
