Canada-based Athabasca Nuclear has entered into a non-binding memorandum of understanding (MOU) with Skyharbour Resources, Noka Resources and Lucky Strike Resources, to facilitate Saskatchewan uranium exploration.

The latest strategic alliance will expand Athabasca’s exploration land coverage, generate working capital, provide third-party funded exploration on its 125,375-ha Preston Lake Property as well as speed up its ongoing uranium exploration efforts.

Under the new partnership, which is subject to entering into the definitive agreement, Athabasca Nuclear will combine its Preston Lake Property with Skyharbour Resource’s Athabasca Properties in order to develop and explore a 287,130-ha uranium project base.

This uranium base is strategically located in all directions near Alpha Minerals and Fission Uranium’s Patterson Lake South uranium discovery and it adjoins projects being advanced by Fission Uranium, , Forum Uranium, Aldrin Resources, NexGen Energy, Zadar Ventures, Azincourt Resources and other regional exploration firms.

Under the terms of the MOU, each of Athabasca Nuclear, Skyharbour, Noka and Lucky Strike will receive an option to earn 25% of the combined lands by making a series of cash payments, share payments and incurring exploration expenditures over the two-year earn-in term of the agreement.

The latest agreement will see $6m of exploration on the combined properties over two years with a minimum of $1m of work planned for 2013.

Athabasca Nuclear president and chief executive officer Charles Downie said that through this new uranium exploration alliance, the company can effectively realize the full potential of its large-scale Preston Lake property, as well as mitigate company specific risk associated with the high cost of making a discovery.

"In aggregate, Athabasca Nuclear will gain exposure to approximately double the land base with increased exploration levels, all while being able to minimize go-forward dilution for ASC shareholders," Downie said.

Athabasca, which will be operator of the project, will receive $200,000 in cash upon the approval of a definitive agreement plus $100,000 of each of Skyharbour, Noka and Lucky Strike common shares.