Cosa Resources options Aurora project to Tractor

Executive Summary

• Cosa Resources Corp. has signed an option agreement with Traction Uranium Corp. to earn up to an 80% interest in the Aurora uranium project.
• The total consideration and expenditure commitments for the earn-in include over $9 million in partner-financed exploration, $1.5 million in cash payments, and 5 million shares of Traction.
• Aurora has not been drilled since 1979; Cosa has identified initial target areas via geophysical work, with drilling expected to commence in 2027.

Key Details

• Transaction Structure: Traction Uranium has the right to earn up to an 80% interest in Cosa's Aurora uranium project through a five-phase earn-in process.
• Financial Consideration:
  • Over $9 million in partner-financed exploration expenditures.
  • $1.5 million in cash payments.
  • Issuance of 5 million shares of Traction to Cosa.
• Operational Terms:
  • Cosa will remain the initial project operator and is entitled to charge an operator fee.
  • Upon completion of phase 4, Traction has the option to assume operatorship.
  • Traction may elect to enter a joint venture with Cosa after completing phases 2 through 5.
  • If Traction terminates the agreement before the completion of phases 1 and 2, all consideration paid is forfeited, and Cosa retains 100% ownership.
• Share Terms: Shares issued to Cosa are subject to a standard hold period of four months and one day following issuance, per Canadian securities regulations.
• Project Status (Aurora):
  • Located in the southeastern Athabasca basin, 16 km east of Key Lake.
  • No diamond drilling since 1979; historical logs show zones of hydrothermal alteration.
  • 2024 geophysical work (airborne gravity gradient and VTEM) identified initial target areas.
  • Sandstone cover is expected to be <100m thick in the northern third and absent elsewhere.
• Next Steps: Property-wide airborne radiometric surveying is expected to commence when conditions permit, followed by ground-truthing, prospecting, and surficial sampling. Drilling is targeted for 2027.

Notable Quotes

• "Cosa's primary focus remains on testing high-priority drill targets at the Darby and Murphy Lake North joint ventures with Denison Mines... however, we are committed to advancing the remainder of our eastern Athabasca portfolio with dedicated partners. Aurora is well located in the southeastern Athabasca basin and initial work by Cosa has identified several priority target areas. We are excited to work with the team at Traction Uranium to advance Aurora." — Keith Bodnarchuk, President and CEO of Cosa