Forum Uranium signs purchase and sales agreement with Agnico Eagle Mines

6 February 2014 (Last Updated February 6th, 2014 18:30)

Canada-based energy company Forum Uranium has signed a purchase and sales agreement to acquire a 100% stake in Agnico Eagle Mines' Judge Sissons and Schultz Lake claims.

Canada-based energy company Forum Uranium has signed a purchase and sales agreement to acquire a 100% stake in Agnico Eagle Mines' Judge Sissons and Schultz Lake claims.

As a part of the deal, Forum will keep the claims with minimal expenditures for three years and will merge its North Thelon property interests with Agnico in return.

The transaction is subject to approval of the TSX Venture Exchange and will enable Agnico Eagle to own 4% of Forum's outstanding common shares after completion.

"North Thelon project continues to be a long-term core asset that the company plans to revisit as uranium prices improve." 

Forum Uranium president and CEO Richard Mazur said the acquisition supports the company's strategy of maintaining a strong presence in the Athabasca as well as the Thelon Basins.

"The Agnico Eagle purchase now gives Forum full control of a strategic landholding in close proximity to AREVA's proposed Kiggavik uranium development," Mazur said.

"Our 100%-owned North Thelon project continues to be a long-term core asset that the company plans to revisit as uranium prices improve and as AREVA advances Kiggavik towards production."

The new agreement replaces Forum Uranium's option agreement signed with Agnico Eagle in March 2008.

This agreement enabled Forum to own a 51% stake in 36 claims consisting of 21,497ha within 300m of the proposed Kiggavik mill site, for exploration expenditures of $3m.

Agnico Eagle has acquired a concurrent $3m of Forum's common shares under the agreement.

Forum had completed two drill campaigns worth $1.75m in 2008 and 2011 that resulted in the Judge and Ranger discoveries.

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