IsoEnergy (TSX: ISO) and Purepoint Uranium (TSXV: PTU) have formed a 60/40 joint venture to explore and develop uranium properties in Saskatchewan’s eastern Athabasca Basin, covering over 980 sq. km.
The JV will include 10 projects in the eastern Athabasca Basin: IsoEnergy’s Geiger, Thorburn Lake, Full Moon, Edge, Collins Bay Extension, North Thorburn, 2Z Lake, and Madison projects, along with Purepoint’s Turnor Lake and Red Willow projects.
Both parties have the option to adjust ownership to a 50/50 split within six months.
As part of the agreement, IsoEnergy will invest C$1 million in Purepoint through a concurrent equity financing. The funding will give IsoEnergy exposure to Purepoint’s other exploration projects in the Athabasca Basin, including Hook Lake, where drilling previously cut 10 metres of uranium at 10.3% U₃O₈.
IsoEnergy also holds more advanced projects, including past producing uranium mines in the United States. Earlier this month, it said it would acquire Anfield Energy (TSXV: AEC) in C$126.8 million, all-stock deal for its Shootaring Canyon conventional mill in Utah.
“This collaboration underscores the confidence our partners—Cameco, Orano, Foran Mining, and now IsoEnergy—have in the potential of these projects,” Chris Frostad, president and CEO of Purepoint said in a release. “It further solidifies Purepoint’s position as a leader in uranium exploration in the Athabasca Basin.”
The deal consolidates a large land position immediately east of IsoEnergy’s Larocque East project, covering several kilometres of the prospective Larocque trend. The trend hosts the company’s Hurricane and Full Moon projects, as well as Cameco (TSX: CCO; NYSE: CCJ) and Orano’s Dawn Lake joint venture, where drilling is under way.
“While small, we like this transaction for ISO,” Canaccord Genuity mining analyst Katie Lachapelle wrote in a note to clients today. “Through this transaction, ISO will gain access to the Turnor Lake property, which sits on trend between the Hurricane discovery and ISO’s Full Moon property… We believe there is good discovery potential throughout the entire Larocque Trend.”
The Athabasca Basin is home to some of the world’s largest and most profitable uranium mines, including the McArthur River and Cigar Lake mines, and it produces roughly 20% of the world’s uranium supply.
Turnor Lake is geologically connected to Cameco’s high-grade La Rocque showings and IsoEnergy’s Hurricane deposit. It is located on the eastern edge of the Athabasca Basin, near several uranium deposits, including Orano’s mined-out JEB deposit (10 km southwest) and Cameco’s Eagle Point deposit (about 10 km south).
Purepoint will operate the exploration phase of the joint venture, and IsoEnergy will take over as the operator during the pre-development phase.
Shares in IsoEnergy fell nearly 3% on Tuesday morning in Toronto to C$3.75 apiece, valuing the company at C$671 million. Purepoint shares jumped 16%, valuing the company at C$17.5 million.
