North Shore Uranium has announced the signing of a binding term sheet with Resurrection Mining to acquire up to an 87.5% stake in the Rio Puerco uranium project in New Mexico.
The Rio Puerco project, with a historical resource estimate of six million tonnes (mt) at 0.09% eU3O8 (radiometric equivalent triuranium octoxide), is in the prolific Grants Uranium District.
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The project has potential for low-cost in-situ recovery (ISR) mining and aligns with US Government initiatives to bolster domestic nuclear capacity and reduce reliance on foreign nuclear fuel.
The transaction is structured with staged earn-in milestones, allowing North Shore to progressively increase its interest in the project.
Upon completion, North Shore will make a $125,000 cash payment and issue 9.99% of its post-financing shares.
Subsequent milestones involve additional payments and exploration expenditures, culminating in North Shore potentially holding an 87.5% interest in Rio Puerco.
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By GlobalDataNorth Shore president and CEO Brooke Clements said: “The Rio Puerco project in New Mexico offers us exposure to a uranium project in the USA with excellent upside and significant historical exploration data including a historical resource estimate.
“The project offers a great opportunity to confirm and expand upon previous work through drilling, modern 3D modelling and continued assessment of the ISR potential. On completion of the transaction with Resurrection, we will have uranium exposure in two North American jurisdictions that have seen significant uranium production, the Grants Uranium District and the Athabasca Basin, at a time when future supply-demand fundamentals look great for the industry.”
The completion of the transaction is subject to several conditions including due diligence, a definitive agreement, a minimum $750,000 financing by North Shore and approval by the TSX Venture Exchange.
North Shore may opt to enter a joint venture with Resurrection after earning a 40% interest, with Resurrection retaining a 12.5% free-carried interest or converting it into a 1% net smelter returns royalty.
Upon completion of the transaction, North Shore plans to initiate work to define the first NI 43-101-compliant uranium resource at Rio Puerco, starting with the verification of historical data and the preparation of geologic models.
The company anticipates drilling 20–40 confirmation holes to confirm historical grades and test for ISR mining suitability.
