Mr. Alex Klenman of Azincourt Energy reports
AZINCOURT ENERGY TO ACQUIRE UP TO 75% INTEREST IN THE HATCHET LAKE URANIUM PROJECT, NE ATHABASCA BASIN, SASAKATCHEWAN
Azincourt Energy Corp. has entered into a definitive property option agreement with Valore Metals Corp., an arm's-length party, pursuant to which the company has been granted the option to acquire up to a 75-per-cent interest in the Hatchet Lake uranium project. The project consists of a series of six mineral claims located in the province of Saskatchewan.
Hatchet Lake is 13,711-hectare uranium exploration project adjacent to the northeastern margin of the Athabasca basin, situated along the underexplored northeast extension of the Western Wollaston domain (WWD) within the Wollaston-Mudjatik Transition zone (WMTZ). This highly prospective structural corridor hosts the majority of known high-grade uranium deposits and all of Canada's operating uranium mines.
Located 39 kilometres along trend from the Roughrider and Midwest uranium deposits and within 30 kilometres of Cameco's Eagle Point uranium mine, Hatchet Lake features multiple, shallow, unconformity-related basement uranium targets based on previous work by both Hathor Exploration Ltd. and Rio Tinto. Previous work includes geophysics, boulder, soil, lake sediment and biogeochemical sampling. The project contains substantial historic exploration data sets with identified uranium anomalism and showings to help guide exploration programs.
Two high-priority zones on the property have been identified: the Upper Manson and SW Scrimes zones. Previous work includes 140 line kilometres of ground geophysics and a 2007 VTEM (versatile time-domain electromagnetic) survey that defined 30 conductive targets with a combined 53 line kilometres of strike length. Total sampling includes 1,583 soil, 2,404 biogeochemical and 24 radioactive rock samples returning assay results up to 2.43 per cent U3O8 (triuranium octoxide) (Valore Metals presentation). Geochemical anomalies highlight a variety of uraniferous host rocks that are coincident with the conductive geophysical targets. Uraniferous rocks are typically referred to as containing uranium significantly above normal expected values.
"Hatchet Lake increases our exposure in the world's premier destination for uranium deposition," said president and chief executive officer Alex Klenman. "This area in the northeast Athabasca basin is ground zero for uranium deposits and producing mines. Yet, the ground just outside the basin boundary remains underexplored. Hatchet Lake features multiple exploration criteria that speaks to substantial discovery potential. This opportunity, along with our majority-controlled East Preston project, provides Azincourt shareholders with exposure to two district-scale, top-tier uranium exploration projects, in the world's pre-eminent location for uranium discovery," continued Mr. Klenman.
"We are excited to add the Hatchet Lake project to our portfolio," said vice-president, exploration, Trevor Perkins. "The eastern side of the Athabasca basin has historically been the hot spot for high-grade uranium, and, along with our East Preston project, we now have excellent land positions in the long-ignored and underexplored extensions of the two best trends in the basin and arguably the world for the discovery of high-grade unconformity-related uranium deposits," continued Mr. Perkins.
Terms and considerations
Pursuant to the terms of the option, the company can acquire a 75-per-cent interest in the project by completing a series of cash payments and share issuances to the optionor and incurring certain expenditures on the project, as shown in the attached table.
All common shares issuable to the optionor will be calculated and issued at a deemed price equivalent to the volume-weighted average closing price of the common shares of the company on the TSX Venture Exchange in the 20 trading days immediately prior to issuance, subject to a minimum price of five cents.
Following completion of these requirements, the company will hold a 75-per-cent interest in the project. In the event the company does not complete the final cash payment ($250,000) and share issuance ($250,000) and incur the final expenditures ($2-million), the company will hold a 50-per-cent interest in the project.
All securities issued in connection with the option will be subject to a four-month-and-one-day statutory hold period. The option remains subject to the approval of the TSX Venture Exchange. In connection with the grant of the option, a cash fee of $105,000 is owing by the company to an arm's-length party that assisted with the introduction of transaction.
Azincourt closes additional private placement
The company has completed an additional non-brokered private placement. In connection with closing, the company has issued 14,333,334 flow-through units and 7,034,570 non-flow-through units for gross proceeds of $1,567,420. This placement included participation by an institutional investor in the amount of 13,333,333 flow-through units. Each non-flow-through unit was offered at a price of seven cents and each flow-through unit was offered at a price of 7.5 cents. Each non-flow-through and flow-through unit consists of one common share and one share purchase warrant entitling the holder to acquire an additional common share of the company at a price of 10 cents until Nov. 10, 2024.
The gross proceeds from the issuance of the flow-through units will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), which will be renounced with an effective date of no later than Dec. 31, 2021, to the purchasers of the flow-through units in an aggregate amount not less than the gross proceeds raised from the issue of the flow-through units. If the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber of flow-through units for any additional taxes payable by such subscriber as a result of the company's failure to renounce the qualifying expenditures.
All securities issuable in connection with the placement are subject to a statutory hold period, in accordance with applicable securities laws, until March 11, 2022. In connection with closing of the placement, the company paid finders' fees totalling $70,000 and issued a total of 933,333 finder warrants. Each finder warrant is exercisable into one common share of the company at a price of 7.5 cents until Nov. 10, 2024.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by C. Trevor Perkins, PGeo, vice-president, exploration of Azincourt Energy, and a qualified person as defined by National Instrument 43-101.
About Azincourt Energy Corp.
Azincourt Energy is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects, including uranium, lithium and other critical clean energy elements. The company is currently active at its majority-controlled joint venture East Preston uranium project in the Athabasca basin in Saskatchewan, Canada, and the Escalera group uranium-lithium project located on the Picotani plateau in southeastern Peru.
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