IsoEnergy and Purepoint Uranium Group have formed a JV to explore and develop uranium properties in the Athabasca Basin, northern Saskatchewan, Canada.
The partnership will combine assets from both companies’ portfolios covering more than 98,000 hectares on the east side of the basin, and leverage their collective expertise.
The JV encompasses ten projects: IsoEnergy’s Collins Bay Extension, Edge, Full Moon, Geiger, Madison, North Thorburn, Thorburn Lake and 2Z Lake projects, as well as Purepoint’s Red Willow and Turnor Lake projects.
The deal strengthens a significant land position east of IsoEnergy’s Larocque East project, covering key areas of the Larocque trend.
This trend includes IsoEnergy’s Hurricane and Full Moon projects, as well as the Dawn Lake JV between Cameco and Orano, where drilling is under way.
IsoEnergy will invest $1m (C$1.38m) in Purepoint as part of a concurrent equity financing arrangement.
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The investment will grant IsoEnergy exposure to Purepoint’s additional exploration projects in the Athabasca Basin, such as the Hook Lake project, which has yielded high-grade uranium intersections.
Conversely, Purepoint will benefit from IsoEnergy’s financial and technical support, enhancing the potential for accelerated project development.
The initial ownership structure of the JV will see IsoEnergy owning a 60% interest and Purepoint holding 40%.
However, there are provisions for either party to balance the ownership to 50/50 within six months through put/call options.
Purepoint will manage the exploration phase, while IsoEnergy is set to take over operational control during the pre-development phase of the JV properties.
IsoEnergy director and CEO Philip Williams said: “Purepoint has proven itself an exceedingly capable operator and the joint venture will allow us to have several of our highly prospective projects advanced, while remaining focused on dual priorities of exploring and advancing the Larocque East project, host to the high-grade Hurricane Deposit, and restarting our past-producing uranium mines in Utah.
“By combining our complementary project portfolios and leveraging our collective expertise, we believe we are well-positioned to accelerate discoveries and create value for our shareholders.”
Earlier this month, IsoEnergy acquired Anfield Energy to boost its near-term uranium production capacity in the US.
