ENRG Elements Expands Portfolio with Lamont Lake Uranium Project Acquisition
EEL (EEL) Share Update July 2024 Wednesday 31st
ENRG Elements Acquires Lamont Lake Uranium Project in Saskatchewan
ENRG Elements Limited (ASX:EEL) has announced the acquisition of the Lamont Lake Uranium Project, located in the highly prospective mining region of Saskatchewan, Canada.
Instant Summary:
- Agreement to acquire 100% of the Lamont Lake Uranium Project in Saskatchewan, Canada.
- Historical geological data indicates shallow mineralisation with grades between 0.02% and 0.5% U3O8.
- Project covers 4 mineral claims over an area of ~22km², including 11 historic uranium occurrences.
- Initial analysis shows similarities to the Beaverlodge deposits, which produced approximately 56Mlb U3O8.
- ENRG Elements aims to define a near-term exploration program based on historical data.
Project Acquisition and Details
ENRG Elements Limited (ASX:EEL, OTCQB: EELFF) has entered into an agreement to acquire 100% of the Lamont Lake Uranium Project, located approximately 85km northwest of Uranium City in North Saskatchewan, Canada. The project is situated immediately north of the Athabasca Basin, known for some of the world's highest-grade uranium deposits.
The Lamont Lake Uranium Project covers 4 mineral claims over an area of ~22km². Historical geological data from the project indicates shallow uranium mineralisation occurring from near-surface to a depth of ~57m, with grades ranging between 0.02% and 0.5% U3O8. The project includes a landholding of 11 historic uranium occurrences with promising historical assays and geological data.
Geological Potential
Initial analysis of the available geological data shows similarities to the Beaverlodge deposits, located approximately 90km southeast of the project area. During its production life, the Beaverlodge deposits produced approximately 56Mlb U3O8 at an average grade of 0.24% U3O8. This similarity suggests significant resource development potential for the Lamont Lake Uranium Project.
The project has seen minimal modern exploration, highlighting a near-term value creation opportunity for ENRG Elements. The company's technical team is reviewing historical exploration results and geological data to define a near-term exploration program.
Acquisition Terms
The acquisition agreement includes a total consideration payable by ENRG Elements, consisting of cash and fully paid ordinary shares. The terms are as follows:
- C$27,500 in cash to be paid to the vendor on execution of the agreement.
- 33,333,333 shares to be issued to the vendor on completion of the acquisition.
- Within six months of completion, ENRG Elements will either pay A$100,000 in cash or issue shares equal in value to A$100,000, subject to shareholder approval.
Completion of the acquisition is expected within the next sixty days, subject to due diligence enquiries.
The acquisition of the Lamont Lake Uranium Project is a strategic move for ENRG Elements, enhancing its portfolio of clean energy assets. The project's shallow mineralisation and historical data suggest significant exploration potential, which could positively impact the company's stock. However, the success of future exploration efforts will be crucial in realizing this potential.
Investor Reaction:
Analysts are likely to view this acquisition positively, given the project's location in a world-class uranium province and its potential for significant resource development. However, investor sentiment will depend on the outcomes of the planned exploration program and any future updates from the company.
Conclusion:
Investors should keep an eye on ENRG Elements' progress with the Lamont Lake Uranium Project. The company's strategic focus on diversifying its portfolio and exploring high-potential projects could offer significant long-term benefits. Stay tuned for further updates as ENRG Elements advances its exploration efforts.