CALGARY, Alberta, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Traction Uranium Corp. (CSE: TRAC) (OTC: TRCTF) (FRA: Z1K) (the “Company” or “Traction”) is pleased to announce that, in connection with the mineral property option agreement (the “Agreement”) between the Company and Forum Energy Metals Corp. (the “Optionor”) dated February 3, 2023 (the “Effective Date”), as amended, the Company has issued a further 250,000 common shares in its capital to fulfill its obligations to date in accordance with the terms and conditions of the Option Agreement.
Pursuant to the Option Agreement, as previously disclosed in the news release dated February 7, 2023, the Company has the right, at its option, to acquire up to a 100% interest in the Grease River Property located in Athabasca Basin, Northern Saskatchewan, Canada (the “Property”) in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into three phases.
Phase One
The Company is entitled to acquire a 51% interest in the Property (the “First Option”) by paying an aggregate of $250,000, issuing an aggregate of 1,625,000 common shares (the “Phase One Consideration Shares”) and funding an aggregate of $3,000,000 in exploration expenditures on the Property in scheduled installments by December 31, 2025. The Company will become operator of the Property if it exercises the First Option. To date, a total of 375,000 Phase One Consideration Shares have been issued to the Vendor.
Phase Two
If the Company exercises the First Option, then it can acquire an additional 19% interest in the Property, for a total interest of 70% (the “Second Option”), by paying an aggregate of $700,000 in cash, issuing an aggregate of 2,500,000 common shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2027.
Phase Three
If the Company exercises the Second Option, then it can acquire an additional 30% interest in the Property, for a total interest of 100% (the “Third Option”), by paying an aggregate of $1,000,000 in cash, issuing an aggregate of 3,000,000 common shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2028.
If the Third Option is exercised, the Company would also be required to (i) grant the Optionor a 2% net smelter returns royalty (the “NSR Royalty”), (ii) pay an additional $1,000,000 upon completion of a preliminary economic assessment this as term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) in respect of the Property, (iii) pay an additional $2,000,000 to the Optionor upon completion and disclosure of a NI 43-101 compliant feasibility study, and (iv) pay an additional $5,000,000 to the Vendor upon commencement of commercial production on the Property.
All common shares issued to the Optionor pursuant to the Option Agreement will be subject to a statutory four month hold period pursuant to applicable Canadian securities laws.
About Traction Uranium Corp.
Traction Uranium Corp. is in the business of mineral exploration and the development of uranium discovery prospects in Canada, including its uranium projects in the world-renowned Athabasca Region.
We invite you to find out more about our exploration-stage activities across Canada’s Western region at www.tractionuranium.com .
This news release includes forward-looking statements that are subject to risks and uncertainties, including with respect to the Company acquiring any interest in the Property, timing of the cash payments, share issuances and funding/expenditure requirements, granting of the NSR Royalty and further exploration and development of the Property. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to risks that the Company will not complete Phase 1, Phase 2 or Phase 3 as contemplated, or at all, risks that the Company will not exercise the First Option, Second Option or the Third Option as contemplated or at all, risks that the Company may not acquire any interest in the Property or an interest less than 100%, risks that NSR Royalty will not be granted as contemplated, or at all, risks that the Property will not be explored or developed as contemplated, or at all, as well as those risk identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
The CSE has neither approved nor disapproved the information contained herein.
