Forum Uranium (FDC-V) Feb 6, '14 has consolidated its North Thelon property interests by entering into a purchase and sales agreement with Agnico Eagle Mines Ltd. to acquire a 100-per-cent interest in Agnico Eagle's Judge Sissons and Schultz Lake claims. Sufficient work has been done by Forum to keep these claims in good standing with minimal expenditures for three years.
Agnico Eagle's claims are strategically located immediately adjacent to AREVA Resources Canada Inc.'s 133-million-pound Kiggavik uranium deposit in Nunavut, which averages 0.54 per cent U3O8 (source: AREVA Resources Canada Kiggavik project EIS, volume 1, main document, April, 2012, submission to the Nunavut Impact Review Board), and is being permitted for an open-pit and underground uranium mine that is projected to produce eight million pounds per year over a mine life of approximately 17 years.
Under the terms of the agreement, which replaces the previous option agreement completed with Agnico Eagle in 2008 (see press releases dated March 3, 2008, and Jan. 15, 2014), Forum will acquire a 100-per-cent interest in the Judge Sissons and Schultz Lake claims for $250,000 cash, 675,000 common shares and a 2-per-cent net smelter royalty. On completion of the transaction, which is subject to approval of the TSX Venture Exchange, Agnico Eagle will own 4 per cent of Forum's outstanding common shares.
Richard Mazur, president and chief executive officer, stated: "This acquisition reinforces Forum's strategy of maintaining a strong presence in both the Athabasca and Thelon basins. The Agnico Eagle purchase now gives Forum full control of a strategic landholding in close proximity to AREVA's proposed Kiggavik uranium development. Our 100-per-cent-owned North Thelon project continues to be a long-term core asset that the company plans to revisit as uranium prices improve and as AREVA advances Kiggavik towards production."
Judge Sissons and Schultz Lake claims background
In March, 2008, Forum entered into an option agreement with Agnico Eagle whereby Forum would earn a 51-per-cent interest in 36 claims comprising 21,497 hectares within 300 metres of the proposed Kiggavik mill site for exploration expenditures of $3-million. In addition, Agnico Eagle completed a concurrent $3-million private placement purchase of Forum common shares. Forum completed two drill campaigns totalling $1.75-million in 2008 and 2011 resulting in the Judge and Ranger discoveries on trend to the east of AREVA's proposed mine development of the End and Andrew deposits. Cameco, the only other strategic landholder in the area other than Forum, has made several important discoveries to the west of the End and Andrew deposits at the Ayra, Qavvik and Tattigaq areas.
Nunavut Tunngavik mineral exploration agreement
As a further consolidation of its interests in the Kiggavik area, Forum and its partner Nunavut Tunngavik Inc. have agreed to amend the terms of its mineral exploration agreement dated Jan. 1, 2009, on Inuit-owned land parcels BL-21 and BL-32 where Forum can earn a 100-per-cent interest, subject to certain terms and conditions. One of Forum's best holes from drilling in 2011 on BL-32 is within two kilometres of one of Cameco's discoveries, the Ayra showing. NTI has given Forum relief from work expenditures for 2014 and 2015 after which work must resume as scheduled under the terms of the MEA in 2016. Forum has the option to accelerate its work commitments and will continue to make its annual rental payments.
Richard Mazur, PGeo, Forum's president and chief executive officer, is the qualified person that has reviewed and approved the contents of this news release. |
