M&A / Property
Terra Clean Energy Corp. Announces Agreement to Earn 100% Interest in The Prospector Freedom Mines Project in Marysvale, Utah, United States
TCEC · Price
Executive Summary
- Terra Clean Energy Corp. announced a staged earn‑in agreement to acquire up to 100 % of the Freedom & Prospector Mines Project in Utah, encompassing historic uranium mines that have produced >1.33 M lbs U₃O₈.
- The transaction requires cash payments, common share issuances and exploration expenditures over a five‑year schedule, with an optional purchase of 50 % of a 2 % net royalty for US$500,000.
- The acquisition provides Terra shareholders exposure to near‑surface uranium assets in a low‑risk jurisdiction and aligns with U.S. critical mineral designation, potentially unlocking federal funding and permitting advantages.
Key Details
- Project Scope: 6 contiguous BLM unpatented lode mining claims covering 39.5 ha in Piute County, Utah (Freedom & Prospector Mines).
- Historical Production: >1.33 M lbs U₃O₈ at an average grade of ~0.22 % from four past‑producing mines (Prospector 1, Prospector 4, Buddy, Lucky Strike).
- Earn‑in Schedule:
| Target Interest | Cash Payment | Common Shares Issued | Exploration Expenditure |
|---|---|---|---|
| 20 % | US$67,500 (upon definitive agreement) | 750,000 shares (within 5 business days) | US$150,000 (by 1‑yr anniversary) |
| 40 % | Additional US$50,000 (by 1‑yr) | Additional 750,000 shares (by 1‑yr) | Additional US$150,000 (by 2‑yr) |
| 60 % | Additional US$75,000 (by 2‑yr) | Additional 750,000 shares (by 2‑yr) | Additional US$200,000 (by 3‑yr) |
| 80 % | Additional US$100,000 (by 3‑yr) | Additional 750,000 shares (by 3‑yr) | Additional US$200,000 (by 4‑yr) |
| 100 % | Additional US$125,000 (by 4‑yr) | Additional 750,000 shares (by 4‑yr) | Additional US$250,000 (by 5‑yr) |
- Royalty Option: Vendors retain a 2 % net royalty; Terra may purchase 50 % of this royalty for a total cash payment of US$500,000.
- Regulatory Conditions: Transaction subject to receipt of all required regulatory approvals, including CSE approval; securities issued will have a four‑month plus one‑day hold period.
- Strategic Rationale:
- Access to historic uranium district with untapped resources; modern drilling and 3D modelling expected to add value.
- U.S. designation of uranium as a critical mineral accelerates permitting, eligibility for federal funding, loans, and grants.
- Enhances Terra’s portfolio with near‑surface, low‑risk uranium assets in North America.
- Exploration Plan: Post‑acquisition work includes digitizing historic data, radiometric surveys (air & ground), trenching of anomalies, and step‑out drilling to confirm deeper extensions (>600 ft) of known ore zones.
- Marketing Agreements: Separate agreements with Ares Capital Markets Group (US$100,000 upfront for 3‑month digital marketing) and Aktien Check (€25,000 upfront for 1‑month European marketing).
Notable Quotes
- “The opportunity here is you have an historic uranium district that was never systematically drilled… 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
- “We believe strongly that we can expand on the previous work through modern exploration technologies like 3D modelling.” – Trevor Perkins, VP Exploration
More from Terra Clean Energy Corp.
Jun 10, 2026 · 07:30