Highlights
Transformational opportunity to acquire up to a 70% interest in 10 highly-prospective uranium projects in the Athabasca Basin and collaborate with Denison Mines (TSX:DML, NYSE:DNN)
Foremost Lithium to change its name to Foremost Clean Energy Ltd.
David Cates, Denison's President and CEO, is expected to join Foremost's Board of Directors
VANCOUVER, British Columbia, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Foremost Lithium Resource & Technology Ltd. (NASDAQ:FMST) (CSE:FAT) ("Foremost Lithium", "Foremost" or the "Company") is pleased to announce today that it has executed a property acquisition agreement (the "Option Agreement") with Denison Mines Corp. ("Denison"), which grants Foremost an option to acquire up to 70% of Denison's interest in 10 uranium exploration properties, along with other ancillary agreements (collectively, the "Transaction"). Pursuant to the Transaction, Foremost will provide Denison with consideration, including cash, stock, and/or future exploration spending commitments by Foremost. The Transaction is subject to regulatory approvals. In connection with the Transaction, Foremost intends to change its name to "Foremost Clean Energy Ltd." Full details of the terms of the Transaction and the name change are outlined below under "Key Terms of the Transaction and Name Change".
"We are pleased to announce a transformative transaction with Denison, a clear leader in the uranium sector. Uranium prices have seen significant strength in recent years driven by the global demand for clean energy, which has been reinforced by supportive government policies and geopolitical events underscoring the need for reliable western uranium supply. The Athabasca Basin is recognized as one of the world's leading uranium jurisdictions, with numerous producing mines and high-profile development projects. This collaboration will advance significant near-term exploration and development efforts across numerous high-quality exploration projects to maximize the properties' potential for the benefit of both Foremost and Denison shareholders," stated Foremost's President and CEO, Jason Barnard. Further, Barnard added, "On behalf of the entire team, I'd like to warmly welcome David Cates to our Board. As Denison's current President and CEO, Mr. Cates will be an invaluable member adding his extensive experience and a proven track record in the Canadian uranium mining space. As a junior explorer, having the support of Mr. Cates and Denison will provide Foremost a competitive advantage. We are confident that Foremost is entering a new chapter of growth, and enhanced outcomes, for the benefit of both companies' shareholders. We look forward to working with Mr. Cates as we steer and support our Company's expansion towards its goal of being a new leading uranium explorer in the Athabasca Basin."
David Cates, President and CEO, commented, "Denison is pleased to work with Foremost to enhance the potential for discovery on an excellent portfolio of uranium exploration properties that would otherwise receive little attention from Denison with our current focus on development and mining stage projects. We are impressed with Foremost's leadership team and technical capabilities and are excited to see high-potential exploration work being carried out on these properties in the coming years."
Transformational Transaction Covering High-Potential Uranium Properties
The project portfolio subject to the Option Agreement consists of 10 properties comprised of 45 claims covering an aggregate area of 332,378 acres (134,509 hectares) within the Athabasca Basin region of northern Saskatchewan (the "Exploration Properties"), which is known for its prolific history of large high-grade uranium discoveries and operating mines—currently producing ~20% of the world's primary uranium supply1. Many of the Exploration Properties are proximal to some of the world's highest-profile uranium operations, such as the McClean Lake mill and Cigar Lake mine, and consist of projects at different stages of exploration, from grassroots exploration to those with significant historical exploration and drill-ready exploration targets.
Generally, the most prospective exploration ground in the eastern portion of the Athabasca Basin is proximal to the Wollaston-Mudjatik Transition Zone ("WMTZ") and has already been staked by existing uranium producers, developers, and explorers. As illustrated in Figure 1 below, the Transaction offers Foremost a unique opportunity to acquire a sizeable portfolio of well-situated properties (including several situated along the WMTZ) to facilitate a pivot towards a future focus on uranium exploration in a top jurisdiction.
Figure 1. Detailed Map of Exploration Properties being Acquired by Foremost
Eastern Properties
Seven (7) of the Exploration Properties are situated within the Eastern portion of the Athabasca Basin region, in proximity to significant existing regional infrastructure, including: Murphy Lake South, Hatchet Lake, Turkey Lake, Torwalt Lake, Marten, Wolverine and Epp Lake (collectively, the "Eastern Properties"). Several of the Eastern Properties host previously identified uranium mineralization in geological settings similar to other known uranium discoveries. Historical drilling has focused primarily on unconformity targets, which provides Foremost further opportunity for continued exploration of potential basement style mineralization. Hatchet Lake is currently undergoing an active summer drilling and evaluation program, while several of the projects contain drill-ready targets from previously conducted exploration programs. The Eastern Properties are highlighted by the following projects:
Murphy Lake South: conductive corridors that host significant high-grade uranium mineralization may extend onto the property; unconformity depth of ~350m
Hatchet Lake: historical mineralization has been identified along the Richardson trend; uranium and base metal enrichment has also been encountered on the property with untested areas identified for follow up
Torwalt Lake: Adjacent to the McClean Lake Operation and within 5km of multiple uranium deposits; potential to identify Key Lake or Collins Bay analogues
Blue Sky Properties
Three (3) of the Exploration Properties are located in the northwestern portion of the Athabasca Basin region (the "Blue Sky Properties"), representing an area of comparative under-exploration and high potential for new discovery, including Blackwing, GR and CLK, which encompass ~250,000 acres (101,634 hectares). These three projects are virtually unexplored. Holes drilled to date at CLK have intersected uranium mineralization, and regional geological surveys compiled by the Government of Saskatchewan indicate the potential for favourable geological settings for uranium mineralization at each property. The Blue Sky Properties are highlighted by the following:
Blackwing and GR: both projects are situated on regional structures; Black Bay Fault and Grease River Shear – the Black Bay Fault hosts multiple Beaverlodge-style deposits in the Uranium City area
CLK: only two historic drill holes are known to have been completed on the property, each of which intersected uranium mineralization, including CLG-D1 (up to 8,600 ppm U) and CLG-D5 (up to 510 ppm U)
Collaboration with Denison
Denison (TSX:DML) (NYSE:DNN) is a leading Athabasca Basin-focused uranium mining, development, and exploration company. Denison's current focus is advancing the Wheeler River project, which represents the largest undeveloped uranium mining project in the infrastructure rich eastern portion of the Athabasca Basin. Denison has a significant team of technical experts based in its office in Saskatoon, Saskatchewan, and this best-in-class team is ideal for supporting Foremost with its technical, operating and corporate initiatives. Upon ...
