ATHA Energy and Terra Uranium Forge Strategic Agreements for Key Mining Projects

New Opportunities for Joint Ventures
ATHA Energy Corp. (CSE: SASK) has announced a significant partnership with Terra Uranium Ltd. (ASX: T92). This collaboration involves definitive option agreements that grant T92 the opportunity to acquire a 70% interest in ATHA’s Spire and Horizon properties, collectively known as the Spire Horizon Projects. In return, ATHA will have the option to earn up to a 60% stake in T92’s Pasfield Lake property.

Exploration Investment Requirements
The agreement outlines a commitment from T92 to invest a total of $4,750,000 in exploration expenditures over a set timeline. This investment is broken down into five key phases:

1. First Expenditure: A minimum of $750,000 by December 20, 2024.
2. Second Expenditure: An additional $1,000,000 by September 21, 2025.
3. Third Expenditure: Another $1,000,000 by September 21, 2026.
4. Fourth Expenditure: $1,000,000 by September 21, 2027.
5. Fifth Expenditure: $1,000,000 by September 21, 2028.

Formation of a Joint Venture
Upon completing the first three expenditure phases, ATHA and T92 will establish a joint venture for the Spire Horizon Projects. Initially, both parties will hold a 50% interest, although ATHA’s share will be a carried interest subject to a 5% interest for a third party. Following the completion of the fourth and fifth expenditure phases, T92’s interest will increase to 70%, while ATHA’s will adjust to 30%.

Potential for Economic Assessment Conversion
If T92 conducts a preliminary economic assessment of the Spire Horizon Projects while ATHA maintains a carried interest, ATHA can choose to convert its carried interest into a participating interest. This strategic partnership aims to bolster exploration efforts and enhance resource development potential for both companies.

Strategic Pasfield Options Unveiled
ATHA Energy Corp. has finalized an agreement with Terra Uranium Ltd. that grants ATHA four exclusive options to acquire interests in the Pasfield Project. Each option allows ATHA to obtain a 15% undivided legal and beneficial interest, contingent on meeting specific exploration criteria.

Exploration and Investment Requirements
The Pasfield Options are structured as follows:

1. First Option: A 15% interest can be acquired by either funding $1,000,000 in exploration or completing one deep hole of at least 1,000 meters by December 31, 2025.
2. Second Option: To increase the interest to 30%, ATHA must either invest $2,000,000 or complete two deep holes by December 31, 2026.
3. Third Option: Another 15% interest can be secured by investing $3,000,000 or completing three deep holes by December 31, 2027.
4. Fourth Option: The final 15% interest requires either a $4,000,000 investment or the completion of four deep holes by December 31, 2028.

Conversion to Net Smelter Returns Royalty
Upon exercising each Pasfield Option, ATHA can convert its 15% interests into a 1% net smelter returns royalty (NSR), with a maximum aggregate NSR of 4%. This offers ATHA flexibility in how it structures its investment returns from the project.

Joint Venture Formation and Camp Access
If ATHA completes the Fourth Option and opts not to convert its interests into an NSR, a joint venture will be established, with T92 holding a 40% interest and ATHA holding 60%. Additionally, ATHA will gain exclusive access to camp facilities on the Pasfield Project, with terms for usage fees to be negotiated with T92. This partnership enhances ATHA’s positioning in the evolving mining landscape and underscores its commitment to resource development.

Extension of Key Agreements
ATHA Energy Corp. has announced the automatic three-month extension of its agreement with Hybrid Financial Inc., which follows the initial six-month term set to conclude on October 11, 2024. Additionally, subject to TSX Venture Exchange (TSXV) approval, the partnership with Gold Standard Media LLC (GSM) has been extended for another three months, now set to end on November 30, 2024, at no extra cost to the company.

Deferral of Marketing Campaign with CDMG
Meanwhile, the collaboration with Creative Direct Marketing Group Inc. (CDMG) has seen a mutual decision to postpone the launch of its marketing campaign due to prevailing market conditions. The initial upfront fee of $83,700 has been paid to CDMG, and there are no further costs associated with this deferral. Updates regarding the marketing campaign’s commencement will be provided in due course, and any amendments to the agreement with CDMG will require TSXV approval.

Arm’s Length Relationships and Ownership Status
All parties involved—Hybrid, GSM, and CDMG—are considered arm’s length entities in relation to ATHA Energy. Notably, GSM and its personnel currently hold no securities in ATHA, and to the company’s knowledge, neither Hybrid nor CDMG, nor their respective directors or employees, own any shares in the company. This strategic alignment aims to enhance ATHA’s investor relations and market presence moving forward.