The project covering an area of 10,157 hectare is located 3 kilometers north of the company’s Keefe Lake project and it comprises of two claims on the eastern margin of the Athabasca Basin.
Under the terms of the agreement, the company will initially make cash payment of C$10,000 ($9,955.9), besides issuing 3,000,000 common shares to the seller on regulatory approval.
To practice the purchase option, it has to pay additional C$500,000 ($497,800)within four years of agreement. To grant a 1% net smelter return royalty to the vendor, the company has to purchase one-half of the royalty for $1m (0.99m).
Athabasca Uranium CEO Gil Schneider said that the company was keen to acquire the property looking at the rare quality of ground remaining in the basin.
"Fisher River lies strategically between two of the Company’s primary exploration sites and its investigation can be easily facilitated as part of any work at Keefe or McCarthy Lakes," added Schneider.
The Fisher River Zone is a primary target in the project and it consists of three related EM anomalies defined through interpretation of a GEOTEM airborne survey that was concluded in 2006 by Denison.
"With this acquisition, Athabasca now controls over 70,000 hectares of premium, shallow target claims in the most prolific uranium-producing region in the world," noted Schneider.
