Terra Clean to acquire Freedom/Prospector project

Executive Summary

• Terra Clean Energy Corp. has announced an agreement to earn up to a 100% interest in the Freedom and Prospector Mines Project, consisting of six BLM unpatented lode mining claims in Marysvale, Utah.
• The project covers historic uranium mines that previously produced over 1.33 million pounds of U3O8, with historical grades averaging 0.22% U3O8.
• The transaction involves staged cash payments, common share issuances, and exploration expenditures, subject to regulatory approvals including the Canadian Securities Exchange.

Key Details

• Asset Details: The project consists of six contiguous Bureau of Bureau of Land Management (BLM) unpatented lode mining claims covering 39.5 hectares in Piute County, Utah.
• Historical Production: The area includes four past-producing uranium mines (Prospector 1, Prospector 4, Buddy, and Lucky Strike) that produced over 1.33 million pounds of U3O8 at reported average grades of 0.22% U3O8 between 1949 and 1969.
• Location and Infrastructure: The property is located approximately 5.25 km northeast of Marysvale, adjacent to the Fishlake National Forest. It features close proximity to major roads, year-round access, power, water sources, and a uranium mill in Blandings, Utah.
• Geology: The district hosts nearly vertical, northeast- and east-striking fissure veins cutting granitic and volcanic rocks of the Belknap volcanic sequence, characterized as an epithermal vein-style uranium system. Primary ore minerals include uraninite, coffinite, jordisite, and umohoite.
• Transaction Structure: To earn interests in the claims, Terra must make cash payments, issue common shares, and incur exploration expenditures. Specific earn-in milestones and payment amounts are not detailed in the release but are subject to a four-month-plus-one-day hold period for issued securities.
• Regulatory Status: The agreement is subject to all regulatory approvals, including the Canadian Securities Exchange.
• Strategic Context: The acquisition aligns with the U.S. government's recent addition of uranium to the critical minerals list, which facilitates permitting, federal funding, loans, and grants.
• Marketing Agreements:
  • Ares Capital Markets Group Inc.: Engaged for a three-month period for digital marketing and public awareness in the U.S. for an upfront payment of $100,000 USD.
  • Aktien Check: Engaged for a one-month period for marketing and public awareness in Europe for an upfront payment of 25,000 Euros.

Notable Quotes

• Greg Cameron, CEO: "The opportunity here is you have an historic uranium district that was never systematically drilled, and, after decades, it will finally get modern mining technology... I am excited to see work begin and believe there to be a clear path to add significant value for our shareholders."
• Greg Cameron, CEO: "This project offers significant upside as it is clear that these old mines were abandoned in the 1970s due to a uranium market collapse not because they ran out of uranium to mine."
• Trevor Perkins, VP Exploration: "We believe strongly that we can expand on the previous work through modern exploration technologies like 3-D modelling."