Canada-based Forum Uranium and Rio Tinto Canada Uranium (RTCUC) are set to modify the property option agreement with Hathor Exploration on the Henday property in the Athabasca Basin, northern Saskatchewan.
RTCUC acquired Hathor's interest in the property with the purchase of Hathor in June 2012.
After earning a 60% interest in Henday, RTCUC gave notice to Forum of its option to earn another 10% interest in the property.
Under the agreement signed with Hathor in 2012, RTCUC was required to fund a bankable feasibility study to earn its additional interest.
With the change in the agreement, RTCUC will be able to acquire the additional interest in Henday by funding $20m alone in exploration or delivering a feasiblility study on the property.
Should RTCUC exercise its right to this interest, Forum will hold a 30% stake.
Comprising three claims covering 7,204ha at the north-eastern margin of the Athabasca Basin, the Henday project is located north-east of the Denison/Areva Midwest Lake project and RTCUC's Roughrider project, north of Cameco/Areva's Dawn Lake project.
Between 2000 and 2005, previous operators drilled a total of 32 holes.
The project was acquired by Forum Uranium in 2007, which completed a series of ground gravity surveys, airborne EM surveys, a resistivity survey and diamond drill programmes in 2008, 2010 and 2011.
The programmes were conducted for a total of 56 holes and 12,754m.
Image: RTCUC acquired Hathor in June 2012. Photo: courtesy of duron123/FreeDigitalPhotos.net.