Kivalliq Energy has acquired 100% stake in Rio Tinto’s Hatchet Lake Uranium Property, located near the Athabasca Basin of Saskatchewan, Canada.

Subject to all claims, Kivalliq is said to make cash payment of C$220,000 upon execution of the agreement.

Kivalliq will also give a 2% NSR royalty on the Hatchet Lake Project to Rio Tinto, while holding a buy-down right of 0.5% or C$750,000.

Kivalliq Energy CEO Jim Paterson said: "The Hatchet Lake project fits well with Kivalliq’s strategy to add high quality uranium exploration projects to our portfolio at low acquisition costs.

"The project has compelling targets based on comprehensive early stage exploration work by Hathor and Rio Tinto, with estimated expenditures exceeding $750,000 since 2007."

The acquisition includes around 13,711 hectares in six claims adjacent to the north-eastern margin of the Athabasca Basin, and 3.5km to the north west of Kivalliq’s Genesis Property.

As per the recent work of Hathor Exploration and Rio Tinto, the property is said to comprise multiple unconformity related basement targets, based on geophysics, boulder, soil, lake sediment and bio-geochemical sampling.

Kivalliq noted that around five priority target areas have been selected for follow-up exploration in 2015.