Canadian GoldCamps to Earn 50% of Murphy Lake for $10M Exploration Spend
Canadian GoldCamps to Earn 50% of Murphy
Lake for $10M Exploration Spend
Kelowna, British Columbia--(Newsfile Corp. - February 20, 2024) -
F3 Uranium Corp. (TSXV: FUU)
(OTCQB: FUUFF)
("
F3
" or the "
Company
") is pleased to announce that it has entered into a non-
binding Letter of Intent ("LOI") with Canadian GoldCamps Corp. ("
Canadian GoldCamps
") wherein
Canadian GoldCamps will enter into a definitive option agreement with F3's newly incorporated wholly-
owned subsidiary F4 Uranium Corp. ("F4"). The staged option will allow Canadian Goldcamps to earn
up to a 70% interest in the Murphy Lake Property (the "Property") in the Athabasca Basin,
Saskatchewan. The Property is located in the north-eastern corner of the Athabasca Basin, 30 km
northwest of Orano's McLean Lake deposits, 5 km south of ISOEnergy's Hurricane Uranium Deposit and
covers approximately 6.1 square kilometers of land.
Dev Randhawa, CEO of F3 and incoming Executive Chairman of F4 commented:
"With this transaction, we have immediately demonstrated the successful unlocking of value within F4's
portfolio of fourteen Athabasca Basin projects.
The partnership highlights the prospectivity of the Murphy
Lake property with Canadian GoldCamps sole-funding exploration for three years, minimizing share
dilution to F4 shareholders. F4 will be the operator during the earn-in period utilizing the management
and technical team responsible for three major uranium discoveries in the Athabasca Basin. Through
this LOI, F4 will receive cash (up to $1.4 million, with $600,000 in the first year) and shares (9.9%
ownership in Canadian Goldcamps post financing), and benefit from up to $18 million in work
expenditures. This transaction exemplifies F4's approach of maximizing our opportunities through the
use property options, joint ventures and directly funded exploration."
Initial 50% interest in the Property:
a
.
Cash payable:
i
.
$100,000 within 7 calendar days of signing the LOI
ii
.
$200,000 upon entering into of a definitive agreement.
iii
.
$150,000 on or before the six-month anniversary of the definitive agreement
iv
.
$150,000 on or before the 12-month anniversary of the definitive agreement
v
.
$150,000 on or before the 18-month anniversary of the definitive agreement
vi
.
$150,000 on or before the 24-month anniversary of the definitive agreement
b
.
Canadian GoldCamps common shares:
i
.
following the next equity financing of Canadian GoldCamps (for gross proceeds of not less than
$6 million), 9.9% of the issued and outstanding common shares of Canadian GoldCamps will
be issued to F4.
c
.
Property expenditures:
i
.
$5M on or before the 1-year anniversary of the signing of the definitive agreement
ii
.
$5M on or before the 2-year anniversary of the signing of the definitive agreement
Additional 20% Interest in the Property for a total of 70%:
d
.
Cash payable:
i
.
$250,000 on or before the 30-month anniversary of the definitive agreement
ii
.
$250,000 on or before the 36-month anniversary of the definitive agreement
e
.
Property expenditures:
i
.
$8M on or before the 3-year anniversary of the signing of the definitive agreement
Net Smelter Returns Royalty ("NSR Royalty"):
f
.
The percentage of a 2% NSR Royalty to F4 equal to Canadian GoldCamps percentage interest in
the Property.
About the Murphy Lake Property
F4's 609-hectare Murphy Lake Project is located in the north-eastern corner of the Athabasca Basin, 30
km northwest of Orano's McLean Lake deposits, 5 km south of ISOEnergy's Hurricane Uranium Deposit,
and 4 km east of Cameco's La Rocque Lake Uranium Zone where drill hole Q22-040 intersected 27.9%
U O over 7.0 m.
The maiden drill program at Murphy Lake was concluded in late September of 2022, and consisted of
14 completed drillholes totaling 6,850m. The scintillometer results from hole ML22-006 intersected up to
2,300 cps (see NR August 10, 2022), which resulted in assay results of 0.065% U
3
O
8
over 2.5m from
322.5m to 324.5m, including 0.242% U
3
O
8
over 0.5m on the E1 EM conductor. Unconformity
associated, basement hosted uranium mineralization was encountered along a strike length of 330m on
the E1 conductor between ML22-011 and ML22-013 (See Assay Results Map below) and was
associated with graphitic and sulphide rich shear zones in an area overlain by approximately 260m of
Athabasca Sandstone.
Qualified Person:
The technical information in this news release has been prepared in accordance with the Canadian
regulatory requirements set out in National Instrument 43-101 and approved on behalf of the Company
by Raymond Ashley, P.Geo., President & COO of F3 Uranium Corp, a Qualified Person. Mr. Ashley has
verified the data disclosed.
About F3 Uranium Corp:
F3 Uranium is advancing the newly discovered high grade JR Zone on the PLN Property in the Western
Athabasca Basin. This area of Saskatchewan is poised to become the next Uranium producer and
home to large uranium deposits including Tiple R, Arrow and Shea Creek. F3 Uranium currently holds 18
properties across the Athabasca Basin including the Murphy Lake Property. F3 has initiated steps to
spin-out by way of a plan of arrangement 14 of its prospective properties, including Murphy Lake, into the
newly incorporated wholly-owned subsidiary F4 Uranium Corp. ("F4"). The PLN Property along with the
Broach (which includes the PW claims) and Minto Properties (collectively, the "PLN Project") will remain
with F3. F3 will transfer the remaining 14 properties to F4 in exchange for F4 shares that will be
distributed to F3 shareholders (see NR dated Jan 16, 2024). There will be no change in shareholder
holdings of F3 as a result of the plan of arrangement.
Contact Information
F3 Uranium Corp.
750-1620 Dickson Avenue
Kelowna, BC V1Y9Y2
Investor Relations
Telephone: 778 484 8030
Email:
ON BEHALF OF THE BOARD
"Dev Randhawa"
Dev Randhawa, CEO
See plan map below and additional plan maps and cross sections at
PLN JR Zone|F3 Uranium
Corp.
under "Sections"
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8110/198452_75037859940e9a3b_002full.jpg
The TSX Venture Exchange has not reviewed, approved or disapproved the contents of this press
release, and does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian
and United States securities laws, which is based upon the Company's current internal expectations,
estimates, projections, assumptions and beliefs. The forward-looking information included in this
press release are made only as of the date of this press release. Such forward-looking statements and
forward-looking information include, but are not limited to, the intention to spin out the Properties; the
creation of F4; the Arrangement, including timing thereof; the transfer of the Properties and the
distribution of shares pursuant to the Arrangement; the intention to list the shares of F4 on the TSXV;
F3's proposed strategic investment into F4; the Arrangement being subject to court, TSXV and
shareholder approvals; the preparation and delivery of a management information circular setting
forth details of the Arrangement; the completion of the Spin-Out and the Listing; the potential benefits
to shareholders and other matters relating to the Arrangement. Forward-looking statements or forward-
looking information relate to future events and future performance and include statements regarding
the expectations and beliefs of management based on information currently available to the
Company. Such forward-looking statements and forward-looking information often, but not always, can
be identified by the use of words such as "plans", "expects", "potential", "is expected", "anticipated",
"is targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or
the negatives thereof or variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements or forward-looking information are subject to a variety of risks and
uncertainties which could cause actual events or results to differ materially from those reflected in the
forward-looking statements or forward-looking information, including, without limitation, risks and
uncertainties relating to: general business and economic conditions; court, TSXV and shareholder
approval for the Arrangement; changes in commodity prices; the supply and demand for, deliveries
of, and the level and volatility of the price of uranium and other metals; changes in project parameters
as exploration plans continue to be refined; costs of exploration including labour and equipment
costs; risks and uncertainties related to the ability to obtain or maintain necessary licenses, permits or
surface rights; changes in credit market conditions and conditions in financial markets generally; the
ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; the
availability of qualified employees and contractors; the impact of value of the Canadian dollar and
U.S. dollar, foreign exchange rates on costs and financial results; market competition; exploration
results not being consistent with the Company's expectations; changes in taxation rates or policies;
technical difficulties in connection with mining activities; changes in environmental regulation;
environmental compliance issues; other risks of the mining industry; and risks related to the effects of
COVID-19. Should one or more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in forward-
looking statements or forward-looking information. Although the Company has attempted to identify
important factors that could cause actual results to differ materially, there may be other factors that
could cause results not to be as anticipated, estimated or intended. For more information on the
Company and the risks and challenges of its business, investors should review the Company's
annual filings that are available at www.sedarplus.ca. The forward-looking statements included in this
press release are made as of the date of this press release and the Company disclaims any intention
or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required by applicable securities
legislation.
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