Terra Balcanica Signs Definitive Agreement to Acquire Saskatchewan
Uranium Assets
Terra Balcanica Resources Corp. (“
Terra” or the
“
Company”) (
CSE:TERA; FRA:UB1), a
multi-jurisdictional, polymetallic exploration company focused on
supporting the global transition to clean energy, is pleased to
announce the signing of the definitive option agreement dated July
2, 2024 (“
Agreement”) between the Company, Fulcrum
Metals Plc. (“
Fulcrum”, AIM:FMET) and Fulcrum
Metals (Canada) Ltd. (“
Fulcrum Canada”), a
wholly-owned subsidiary of Fulcrum, pursuant to which the
Company will obtain a four-year option (the
“
Option”) to acquire a 100% interest in Fulcrum’s
uranium portfolio of exploration licences (the
“
Licences”) located in northern Saskatchewan,
Canada and collectively encompassing 596.71 km2 of highly
prospective ground for a uranium discovery.
Pursuant to the Agreement, on closing (the
“Option Closing Date”), Fulcrum and Fulcrum Canada
will grant Terra the Option to acquire a 100% interest in the
Licences, comprising Fulcrum’s Charlot-Neely Lake, Fontaine
Lake, Snowbird, and South Pendleton licence clusters located
along northern and southeastern margins of the renowned Athabasca
Basin, the supplier of ca. 20% of world’s uranium and home to
significant uranium deposits.
In consideration for the Option, Terra has paid
C$25,000 in cash to Fulcrum to date.
Additionally, Terra may exercise the Option by
paying Fulcrum cash according to the schedule below:
- C$50,000 on the first anniversary of the Option Closing
Date;
- C$75,000 on the second anniversary of the Option Closing
Date;
- C$75,000 on the third anniversary of the Option Closing
Date;
- C$75,000 on the fourth anniversary of the Option Closing Date;
and
issue Fulcrum Canada common shares of Terra at
the 10-day volume weighted average trading price of Terra’s shares
ending three trading days prior to the date of issuance, subject to
the minimum pricing requirements of the Canadian Securities
Exchange (the “CSE”), as per the following
schedule:
- C$250,000 of Terra shares on the Option Closing Date;
- C$350,000 of Terra shares on the anniversary of the Option
Closing Date;
- C$560,000 of Terra shares on the second anniversary of the
Option Closing Date;
- C$650,000 of Terra shares on the third anniversary of the
Option Closing Date;
- C$1,250,000 of Terra shares on the fourth anniversary of the
Option Closing Date; and
Terra will also complete minimum work
expenditures totalling C$3,250,000 prior to the fourth anniversary
of the Option Agreement.
Upon the exercise of the Option, Terra will
grant Fulcrum a 1.0% net smelter returns royalty
(“NSR”) on all claims with a buy-down option for
half of the NSR, being a 0.5% NSR, for the cash payment of
C$1,000,000.
Global Energy Metals Corp. (“Global
Energy”) acted as a finder for this transaction by
introducing the parties and facilitating the negotiation of the
Agreement. As compensation for Global Energy’s services, the
Company, Fulcrum Canada and Global Energy entered into a finder’s
agreement (the “Finder’s Fee Agreement”), in which
Global Energy will be compensated with 1,198,291 shares of Terra on
the Option Closing Date subject to the minimum pricing requirements
of the CSE and, upon the exercise of the Option, the Company will
grant Global Energy a 0.5% NSR on all of the Licences, subject to a
buy-down option of the entire NSR for the cash payment
C$500,000.
The Agreement replaces the Letter of Intent
between the Company and Fulcrum signed on April 2nd, 2024 (see news
release of the Company dated April 3rd, 2024).
The transaction contemplated under the Agreement
and the Finder’s Fee Agreement are subject to the approval of the
CSE.
The common shares of Terra issued under the
terms of the Agreement and the Finder’s Fee Agreement will be
subject to a hold period of four months from the date of issuance
in accordance with applicable securities laws in Canada.
Highlights
- 596.71
km2 of land tenure along northern
and southeastern edges of the Athabasca Basin, a premium
mining district and the leading global source of high-grade uranium
with over 70 million lbs of U3O8 produced;
- Surface uranium samples of
up to 6.22 %
U3O8
at Charlot-Neely and up to 1.44 %
U3O8
at Fontaine-Lake licences with anomalous surface
radiometric readings of >7,000 cps as well as rare earth element
assays;
- A historic (non-43-101 compliant)
diamond drill hole intercept of 3.91 g/t Au over 45.8 m
from surface at the Charlot-Neely licence;
- The recent drill hole
intercept of 1,309 cps over 8.7 m by Aero
Energy and Fortune Bay on the Murmac project (see news release
dated June 25th, 2024) is located only 20 km SW of Terra’s
Charlot-Neely Lake licence and marks the first Beaverlodge
District uranium discovery in more than half a century
- Historical work has demonstrated
multiple occurrences of uranium mineralization
along NE-SW structural corridors such as Black Bay
fault, Black Lake shear, and the Snowbird tectonic zone and the
many associated fault splays and graphitic
conductors;
Terra Balcanica CEO, Dr. Aleksandar
Mišković, commented: “The agreement signed with Fulcrum
marks an exciting new chapter in Terra’s corporate history as a
high-quality target generator and explorer of critically needed
commodities. The Company is now exposed to a world-class uranium
district that is experiencing a mining renaissance as evidenced by
the recent discovery made just 20 km from of our flagship
Charlot-Neely licence. With close to 600 km2 of land tenure, we are
supremely positioned to take early-mover advantage of opportunities
along the entire northern and eastern margins of Athabasca Basin.
The optioned portfolio comprises geologically promising ground that
has not seen modern surveying nor recent drilling. We are excited
to approach it by applying the same level of technical rigor as we
did in the Balkans to define drill targets with a high probability
of success. In addition to multiple uranium occurrences, the
licences feature gold, copper, nickel and cobalt showings. We are
fortunate to have inherited a wealth of legacy data from Fulcrum
along with the expertise of Mr. Gary Dunn, a veteran of uranium
exploration in Saskatchewan. It will be an eventful autumn of
prospecting, sampling, and structural mapping together with
airborne geophysics to rapidly define drill targets.”
Portfolio OverviewThe optioned
terrain in norther Saskatchewan is divided into 4 licence clusters
targeting the NE-SW structures and associated electromagnetic
conductors along strike from historic mines and projects that have
attracted significant investment as zones most likely to host
basement- and intrusive hosted uranium mineralizations (Figure
1).
Figure 1. Saskatchewan’s Athabasca Basin with
the optioned licence portfolio (click here to view image).
Southeastern margins of the Athabasca Basin are
known locations of world-class discoveries such as the Arrow
deposit discovered by NexGen Energy Ltd. (4.3 Mt at 0.83% U3O8),
and the Triple R deposit (2.7 Mt at 1.94% U3O8) being developed by
Fission Uranium Corp. Such sizable accumulations of uranium ore
have proved the concept of exploring along fluid bearing structures
outside the Basin that have been genetically interpreted to form
either the basement or the so-called “Beaverlodge” styles of
mineralization (Figure 2).
Figure 2. Three styles of
uranium mineralization in northern Saskatchewan on an idealized
cross-section of the Athabasca Basin. Terra Balcanica’s portfolio
focuses on the margins of the Basin where the basement-hosted and
so-called “Beaverlodge-style” mineralizations are found as surface
expressions of deep-seated feeder dykes and crustal faults (click
here to view image).
Terra will focus on this exploration paradigm
however, the Company will aim to target major NE-SE trending faults
and associated secondary structural corridors along northern
margins of the Basin where close to 32,000 tons of U3O8 have been
produced in the Beaverlodge District alone.
Charlot – Neely Lake The
flagship Charlot-Nely Lake property (Figure 3) covers 163.72 km2
and is located at the heart of the historic Beaverlodge District,
13 km NE of Uranium City. It is found within 10 km radius of the 14
historic mines and uranium ore producers. The licence covers more
than 20 km strike length of the major Black Bay Fault with 16 km of
previously identified, fault-parallel graphitic conductors. It also
hosts significant REE potential given the adjacent Alces REE
discovery by Appia with historical samples of over 31% U3O8 and
over 16% REE.
Figure 3. Tenure map of the
Beaverlodge District along northwestern margin of the Athabasca
Basin with Terra’s flagship 168 km2 Charlot-Neely Lake property
north of centre and 20 km NE along a major structural feature
(Black Bay fault) from the recent drill intercept by Aero Energy
Ltd.-Fortune Bay Corp. at the Murmac project (click here to view
image).
The licence benefits from work completed in 2023
which confirmed uranium mineralization on surface of up to
0.55 % U and assays of 0.8%
U3O8
confirmed at Peacock showing in 2023, and extensive zones of up to
7,000 cps (counts per second) radioactivity. Historic occurrences
are noted of up to 6.22 %
U3O8.
The first order controls for basement hosted mineralisation are
present with large scale structural features, linear conductors
that possibly contain graphitic horizons as important reductants
and surface uranium anomalism. There is also note of gold drilling
intercept of 3.91 g/t Au over 45.8 m from surface
(DDH17) which adds additional exploration appeal to the licence
(Figure 4).The Company will focus on high-grade sources of the
surficial uranium showings along most radioactive segments of the
graphitic conductors as previously untested drill targets.
Figure 4. Charlot-Neely Lake
licence cluster encompasses 168 km2 and captures 20 km of the
along-strike extent of the Black Bay Fault system with its splays
and associated electromagnetic conductors. These graphitic seams
serve as favourable redox traps for oxidizing uranium-bearing
fluids channelled by deeps seated faults and shears. Multiple
anomalously radioactive locations are scattered throughout the
tenure (click here to view image).
Fontaine Lake and SnowbirdThese
licences stretch over 388 km2 and straddle the Grease River Shear
Zone, its sub-faults as well as the Snowbird Tectonic Zone (Figure
5). The Black Lake Shear Zone which also transects the Snowbird
licence cluster can be traced for 200 km across the Athabasca Basin
and is associated with Cameco’s Centennial project. Additionally,
the Cora and Legs Lake Shear Zones contain multiple airborne
radioactivity anomalies that were not followed up on trend. Haymac
Mines has recently restarted mining at Nisto Mine which is known
for having shipped 500 tons of high-grade ore to Uranium City in
the 1950s with one shipment being 106 tons grading 1.6% U3O8. A
minimal field program was completed at Fontaine Lake in 2008 with
surficial showings of 1% uranium while further work was recommended
by CanAlaska Uranium that leaves plenty of discovery potential.
South PendletonThe South
Pendleton property sits upon the Needle Falls Shear Zone and covers
44.76 km2 of terrain along southeastern edge of the Athabasca
Basin. It is proximal to Skyharbour Resources’ South Falcon
project. It features the same basement lithologies as those hosting
the prolific Key Lake and Rabbit Lake mines however, several
surficial radioactive anomalies and occurrences of uranium
mineralization have not been explored yet.
Figure 5. Fontaine Lake and
Snowbird licence clusters jointly encompass 388 km2 of terrain
along northern and northeastern margins of the Athabasca Basin
strategically covering both the Black Lake shear zone and the
coupled Grease River and Snowbird Tectonic Zones with their NNE-SSW
faults and splays (click here to view image).
Exploration PlanThe Company
intends to review cumulative legacy data set by including company
assessment reports, historic governmental maps and surveys,
extracting findings from research papers, compiling locations of
key showings and combining it all into an internally consistent GIS
database. Subsequently, Terra will commission a combined, >3,000
line-kilometer, airborne geophysical survey comprising V-TEM Plus
electromagnetic and radiometric measurements along a tight,
150-spaced flight grid over all four licence clusters. Data
obtained from the geophysics will be combined with the existing GIS
database to identify high-priority target zones to follow up by a
month and a half of detailed field work including ground
radiometrics and lithological sampling in autumn of 2024. Our goal
is to immediately generate and rank a dozen drill targets along key
structural corridors to be tested in early spring of 2025. Work
with the local First Nations to obtain social license to operate
and work collaboratively will begin in earnest this summer.
Qualified PersonDr. Aleksandar
Mišković, P.Geo, is the Company’s designated Qualified Person
(“QP”) for this news release within the meaning of National
Instrument 43-101 Standards of Disclosure of Mineral Projects (“NI
43-101”) and has reviewed and validated that the information
contained in this news release as accurate. The QP has not directly
verified the data disclosed, including sampling, analytical, and
test data underlying the information contained in the press release
except to perform a desktop overview of the legacy date provide by
Fulcrum.
About the CompanyTerra
Balcanica is a polymetallic and energy metals exploration company
targeting large-scale mineral systems in the Balkans of
southeastern Europe and northern Saskatchewan, Canada. The Company
has 90% interest in the Viogor-Zanik Project in eastern Bosnia and
Herzegovina and owns 100% of the Ceovishte mineral exploration
licence in southern Serbia. The Canadian assets comprise a 100%
optioned portfolio of uranium-prospective licences at the outskirts
of the world-renowned Athabasca basin: Charlot-Neely Lake, Fontaine
Lake, Snowbird, and South Pendleton. The Company emphasizes
responsible engagement with local communities and stakeholders. It
is committed to proactively implementing Good International
Industry Practice (GIIP) and sustainable health, safety, and
environmental management.
ON BEHALF OF THE BOARD OF DIRECTORS
Terra Balcanica Resources
Corp.“Aleksandar Mišković”
Aleksandar
MiškovićPresident and CEO
For the complete information on this news
release, please contact Aleksandar Mišković at
amiskovic@terrabresources.com, +1 (514) 796-7577, or visit
www.terrabresources.com/en/news.
Cautionary Statement
This news release contains certain
forward-looking information and forward-looking statements within
the meaning of applicable securities legislation (collectively
“forward-looking statements”). The use of any of the words “will”,
“intends” and similar expressions are intended to identify
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. Such
forward-looking statements should not be unduly relied upon. Actual
results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and
other factors. The Company believes the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct. The
Company does not undertake to update these forward-looking
statements, except as required by law.