This news follows the previously announced binding letter of agreement.
Harts Point Property Highlights: World class uranium jurisdiction: located in the center of the Colorado Plateau, which has produced over 328 million ('M') pounds ('lbs') U3O8 at 0.2 to 0.4% U3O8 since the 1950s-1.
Harts Point Anticline is Analogous to the Lisbon Valley Anticline: where the
The dimensions of these tabular sandstone-hosted uranium deposits range from 2 to 13 meters ('m') (7 to 43 feet) thick, 100 to 3,048 m (328 to 10,000 feet) long, and 31 to 427 m (100 to 1,400 feet) wide-3.
Significant Historic Uranium Production:
Several historic mines located 11 km (7 miles) west of the Harts Point Property produced approximately 280,000 lbs U3O8 at 0.3% U3O8 from the favorable Chinle Formation host rock4.
The Lisbon Valley Anticline is located 31 km (19 miles) to the east of the Harts Point Property produced approximately 80M lbs U3O8 0.34% U3O8-2.
Historic Exploration: Three wide-spaced historic oil and gas wells on the Property along the east flank of the Harts Point Anticline show 'off-scale' radioactivity within the favorable Chinle Formation host rock.
Excellent Infrastructure: located approximately 64 km (40 miles) north of the White Mesa uranium processing facility.
There is excellent access throughout the Property, which is situated 45 km (28 miles) from the town of
Terms of the Agreement: Under the terms of the Agreement, the parties have entered into a definitive option agreement (the 'Option Agreement'), pursuant to which the Company may acquire up to 75% of the Harts Point Property from
Kraken has the option to increase interest in the Property from 65% to 75% by incurring an additional
Kraken will grant Atomic a 2.0% net smelter royalty (subject to a buy down to 1.0% for
After the initial option (Kraken 65%: Atomic 35%) or the extended option (Kraken 75%: Atomic 25%), a definitive Joint Venture Agreement will be formed.
As consideration for identifying the Harts Point Property and facilitating completion of the proposed transaction, a 'non-arm's length party' to the Company will be issued 110,000 common shares in the capital of the Company as a finder's fee (the 'Finder's
References
Chenoweth, W.L. (1990).
Chenoweth, W.L. (1993): The geology and Production History of the Uranium deposits in the
Technical Information
The data disclosed in this news release is related to historical drilling results. Kraken has not undertaken any independent investigation of the sampling, nor has it independently analyzed the results of the historical exploration work in order to verify the results. Kraken considers these historical drill results relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.
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This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward-looking statements in this press release include our plans for exploration at the properties. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations based on drilling that may change with more detailed information; potential process methods and mineral recoveries assumption based on limited test work and by comparison to what are considered analogous deposits that with further test work may not be comparable; the availability of labour, equipment and markets for the products produced and despite the current expected viability of the project, conditions changing such that the minerals on our property cannot be economically mined, or that the required permits to build and operate the envisaged mine can be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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