Americas Uranium Corp. to Acquire 100% Interest in Treeline Uranium Project in New Mexico
CSE: NUCA | OTCQB: ASRFF | FSE: WA7
Overview
Americas Uranium Corp. announced that it has entered into a Mineral Property Purchase Agreement with Verdera Energy Corp. and Verdera's wholly-owned subsidiary, NM Energy Holding Corp., pursuant to which the company has agreed to acquire a 100% interest in the Treeline uranium property, located in Cibola and McKinley Counties, New Mexico, USA, through NM Energy, according to the company.
According to the company, the acquisition represents an advancement of Americas Uranium's strategy to build a portfolio of uranium assets in North America and provides the company with an exploration property containing known uranium mineralization, historical drilling and what the company describes as multiple opportunities for resource confirmation and expansion.
Key Highlights
- Americas Uranium will acquire a 100% interest in the Treeline Property and associated property rights, subject to existing and newly granted royalties, according to the company.
- Historical information relating to the Treeline Property includes an estimate of approximately 1,020,000 pounds of U3O8, calculated in 1978, according to the company; there are insufficient details available on the procedures used to determine if any of this estimate meets National Instrument 43-101 ("NI 43-101") standards (Penn and Rice, 2005), and the company states it is not treating the historical estimate as a current mineral resource or mineral reserve.
- Uranium mineralization is concentrated within a North Trend, reported to extend approximately 2,000 feet northwest-southeast and approximately 175 feet wide, and a South Trend, reported to extend approximately 3,250 feet and range from approximately 50 to 150 feet in width, according to the company.
- Axiom Exploration Group's review of the historical data notes that both zones of mineralization are relatively shallow, according to the company.
- The Property is located in an area with a history of uranium exploration and mining, with historical mining having occurred immediately southeast of the Property at the San Mateo mine, per the company.
- Consideration consists of US$100,000 in cash and C$2,000,000 in common shares of Americas Uranium, with 90% of the share consideration payable in staged issuances over the 36 months following closing, according to the company.
- Americas Uranium will also receive a right of first refusal over specified additional properties surrounding the acquired land position, according to the company.
Strategic/Operational Context
According to the company, Axiom's review concluded that the Treeline Property has geological merit due to the uranium mineralization historically identified within Section 24 and recommends that future exploration initially focus on determining the work necessary to establish a current NI 43-101-compliant resource, including compilation and digitization of all known historical drill holes, development of an updated geological and resource model, RC and diamond core drilling, gamma logging to enable comparison with historical drill-hole information, twinning of selected historical holes along both the North and South trends, collection and analysis of drill cuttings and core using modern analytical techniques, and additional exploration along extensions of the North and South trends. Axiom also identified additional exploration potential east-southeast along trend on the unpatented mining claims and in areas north and south of the San Mateo mine, according to the company. The company states it intends to undertake a comprehensive review and compilation of the available historical database following completion of the acquisition and use the results to design its initial exploration program.
Nicholas Luksha, President and Chief Executive Officer of Americas Uranium Corp., commented: "The acquisition of Treeline represents an important step for Americas Uranium as we build a portfolio of uranium assets in North America. With a historical estimate of approximately 1.02 million pounds of U3O8, known uranium mineralization and historical exploration, Treeline provides a solid foundation for further exploration." Luksha added: "As the U.S. expands nuclear power and strengthens its domestic nuclear fuel supply chain, we believe high-quality American uranium assets will become increasingly important. Our focus is now on advancing the historical work at Treeline and determining the drilling required to evaluate the historical estimate under current NI 43-101 standards."
Resources and Financials
- Historical estimate: approximately 1,020,000 pounds of U3O8, calculated in 1978 (Penn and Rice, 2005); not classified as a current mineral resource or mineral reserve.
- North Trend: approximately 2,000 feet northwest-southeast, approximately 175 feet wide.
- South Trend: approximately 3,250 feet along strike, approximately 50 to 150 feet wide.
- Cash consideration: US$100,000 payable on the Closing Date.
- Share consideration: C$2,000,000 total, issued in staged tranches: CDN$200,000 on the Closing Date (deemed price of $0.285 per Share), CDN$200,000 at six months, CDN$200,000 at twelve months, CDN$200,000 at eighteen months, CDN$400,000 at twenty-four months, CDN$400,000 at thirty months, and CDN$400,000 at thirty-six months from the Closing Date, with tranches after closing valued using the ten-day volume weighted average price immediately preceding the due date, subject to maximum allowable discount and CSE minimum price policies.
- Vendor Royalty: 1.5% granted to Verdera, with the company having the right but not the obligation to purchase one-third of the Vendor Royalty at any time following the Closing Date for a one-time payment of CDN$400,000.
- The Property is also subject to an existing 2% net proceeds royalty on uranium and 2% net smelter returns royalty on other minerals pursuant to a May 15, 2025 royalty deed between Verdera and enCore Energy Corp.
- Shares issued under the agreement will be subject to a hold period of four months and one day from the date of Closing.
- Shares issuable to Verdera are subject to a beneficial ownership limitation of 19.99% of the total issued and outstanding Shares, with any excess issuance deferred until Verdera's ownership falls below that threshold.
What to Watch Next
- Closing of the Transaction remains subject to receiving all necessary consents and approvals, including approval of the CSE, as well as satisfaction of customary closing conditions, according to the company.
- The company expects to complete the Transaction in the coming weeks, according to the press release.
- Following completion of the acquisition, the company intends to undertake a comprehensive review and compilation of the available historical database and use the results to design its initial exploration program, according to the company.
About Americas Uranium Corp.
Americas Uranium Corp. is a uranium exploration company focused on the acquisition, exploration and advancement of uranium projects in the Americas, with an emphasis on assets positioned to contribute to the growing need for secure North American uranium supply. The Company's common shares trade in Canada under the symbol NUCA, in the United States under the symbol ASRFF, and in Germany under the symbol WA7.
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