Ever since the Patterson Lake discovery was made by Fission Uranium (TSXV:FCU) and Alpha Minerals (TSXV:AMW), exploration activity in Northern Saskatchewan's Athabasca Basin has flourished. However, as a junior exploration company, the current financial environment can prove to be incredibly challenging. In an attempt to circumvent these challenges, four uranium exploration companies have banded together to save costs and explore the largest mineral claim in the world's highest-grade uranium district.
Athabasca Nuclear Corp (TSXV:ASC), Skyharbour Resources (TSXV:SYH), Noka Resources (TSXV:NX) and Lucky Strike Resources (TSXV:LKY) have entered into a formal agreement to carry out uranium exploration in the Athabasca Basin. The newly formed group is called the Western Athabasca Syndicate and combined it will be working on the development of a 287,130 hectare claim of land, known as the Western Athabasca Syndicate Project (WASP) — the largest mineral claim on the western side of the Athabasca Basin controlled by one single group.
Charles Downie, President, CEO and Director of Athabasca Nuclear, the operator of WASP, spoke with Uranium Investing News about the syndicate and what it means for the companies involved.
Downie explained that over the years he has been involved in similar types of deals, however, they were focused on claim staking. As far as companies planning work on a claim, the syndicate is rather unique.
"I've never seen a deal like this where they are actually going forward to do work," he said. "At the end of the agreement, once we've all earned 25 percent, we'll be in a joint venture stage. Depending on what we've found— if we make a big discovery— it will be really easy to take that Athabasca syndicate property and put it into another company that we all have 25 percent of."