IsoEnergy and Purepoint have successfully formed a JV to consolidate ten uranium projects spanning more than 98,000ha in the eastern Athabasca Basin, Saskatchewan.
This strategic collaboration aims to advance high-potential uranium assets at the Athabasca Basin, considered to be one of the world’s premier uranium-producing regions.
The JV initially allocates 60% ownership to IsoEnergy and 40% to Purepoint, with options to adjust the ownership structure.
The JV includes a put/call option allowing a 10% transfer of IsoEnergy’s interest to Purepoint in exchange for 4,000,000 common shares of Purepoint.
IsoEnergy CEO and director Philip Williams said: “This partnership allows us to advance a promising portfolio of uranium projects while maintaining our focus on IsoEnergy’s core development assets.
“By working alongside Purepoint, a highly experienced operator in the Athabasca Basin, we ensure these projects receive the dedicated attention and resources needed to unlock their full potential.”
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
IsoEnergy is deemed to have acquired beneficial ownership of the 4,000,000 Purepoint shares issuable upon exercise of the put/call option under Canadian securities laws. This option is exercisable within six months of the JV’s formation.
Following this period, IsoEnergy has an additional option to purchase a 1% interest from Purepoint for C$2m ($1.3m), potentially adjusting the ownership to 51% for IsoEnergy and 49% for Purepoint.
The ownership interests are subject to standard dilution, with any interest reduced to 10% or less being exchanged for a 2% net smelter royalty on the JV properties.
The collaboration brings together a complementary portfolio of properties along the Larocque Trend, known for high-grade uranium discoveries including IsoEnergy’s Hurricane Deposit.
Under the JV agreement, Purepoint will operate during the exploration phase, while IsoEnergy will take control in predevelopment stages.
Purepoint president and CEO Chris Frostad said: “Our strategy of partnering with the strongest players in the uranium sector ensures that our most prospective projects, like those within this joint venture, are supported by a secure and sustainable source of funding.
“This collaboration not only validates the potential of these assets but also aligns with our commitment to advance them responsibly and efficiently.”
Work programmes across the joint portfolio are expected to commence soon.
