- Forum Energy Metals Corp. (FMC) has signed a property option agreement with Traction Uranium Corp
- The agreement grants Traction the right to acquire up to a 100-per-cent interest in Forum’s 100-per-cent-owned Grease River Property in the Athabasca Basin
- This is in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into three phases
- Forum Energy Metals Corp. is a diversified energy metal company with uranium, copper, nickel, and cobalt projects in Canada and the US
- Forum Energy Metals Corp. was unchanged at $0.11 at 12:57 PM ET
Forum Energy Metals Corp. (FMC) has signed a property option agreement with Traction Uranium Corp.
The agreement grants Traction the right, at its option, to acquire up to a 100-per-cent interest in Forum’s 100-per-cent-owned Grease River Property located in the Athabasca Basin, Northern Saskatchewan.
This is in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into three phases.
In the first phase, Traction is entitled to acquire a 51-per-cent interest in the property by paying an aggregate of $250,000, issuing an aggregate of 1,625,000 common shares and funding an aggregate of $3,000,000 in exploration expenditures on the property by December 31, 2025.
In the second phase, if Traction exercises the first option, then it can acquire an additional 19 per cent interest in the property, for a total interest of 70 per cent, by paying an aggregate of a further $700,000 in cash, issuing an aggregate of a further 2,500,000 Shares and funding an aggregate of a further $3,000,000 in exploration expenditures on the property by December 31, 2027.
In the third phase, if Traction exercises the second option, then it can acquire an additional 30 per cent interest in the property, for a total interest of 100 per cent, by paying an aggregate of a further $1,000,000 in cash, issuing an aggregate of a further 3,000,000 shares and funding an aggregate of a further $3,000,000 in exploration expenditures on the property by December 31, 2028.
Forum will be the operator of the property until Traction completes the first phase.
The Grease River Project is located within the north-central margin of the Athabasca Basin near the community of Fond du Lac.
Limited exploration has been conducted in the property area, and there is potential for additional uranium mineralization along the shear zone. Airborne geophysical surveys are planned in 2023 to aid in structural mapping and to define prospective drill targets.
Forum Energy Metals Corp. is a diversified energy metal company with uranium, copper, nickel, and cobalt projects in Canada and the US.
Forum Energy Metals Corp. was unchanged at $0.11 at 12:57 PM ET.
