Foremost Lithium unveils $30 million property deal with Denison

Foremost Lithium Resources & Technology Ltd. [FAT-CSE, FMST-NASDAQ] said it has executed a property acquisition agreement with Denison Mines Corp. [DML-TSX], which grants Foremost an option to acquire 70% of Denison’s interest in 10 uranium exploration properties in Saskatchewan for a combined consideration of $30 million.

Under the agreement, Foremost said the deal involves a combination of cash, stock and/or future exploration spending commitments. In connection with the transaction, Foremost said it intends to change its name to Foremost Clean Energy Ltd.

The project portfolio, included in the deal consists of 10 properties comprised of 45 claims covering an aggregate area of 134,509 hectares within the Athabasca region of northern Saskatchewan, a region known for its prolific history of large high-grade uranium discoveries and operating mines. Those operations are currently producing 20% of the world’s primary uranium supply.

“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 Dension shareholders,’’ said Foremost CEO Jason Barnard.

Foremost Lithium shares were unchanged at $4.26 and trade in a 52-week range of $5.79 and $2.60. Denison was also unchanged at $2.37. The shares trade in a 52-week range of $3.37 and $1.91.

Denison will retain direct interests in the optioned exploration properties and become Foremost’s largest shareholder upon completion of Phase 1 on or before October 7, 2024. Foremost will be required to invest a minimum of $8.0 million in exploration expenditures to retain interests in the properties and $20 million in exploration expenditures to fully exercise the option. (Phase 2 and 3 are expected to be earned within 36 months each). Upon completion of either Phase 2 or3, the parties will enter a joint venture agreement in respect of each of the exploration properties.

Many of the exploration properties are proximal to some of the world’s highest-profile uranium operations, including the McClean Lake mill and Cigar Lake mine. The portfolio consists of projects at different stages of exploration, from grassroots exploration to those with significant historical exploration and drill-ready exploration targets.

Denison is focused on developing the Pheonix deposit on the Wheeler River property. It is expected to rank as Canada’s first In-Situ Recovery (ISR) uranium mine and potentially one of the lowest-cost uranium mines in the world.

In January, 2024, Denison awarded a contract for approximately $16 million to Wood Canada Ltd. for the completion of design engineering for the ISR mining project planned for the Pheonix uranium deposit.

In 2023, Wood completed a feasibility study to evaluate the use of the ISR mining method and demonstrated robust economics. The project continues to move towards a final investment decision.

Denison’s interests in Saskatchewan include a 22.5% interest in the McClean Lake Joint Venture, which includes unmined uranium deposits and the McClean Lake mill (currently using a portion of its licensed capacity to process ore from the Cigar Lake mine under a toll milling agreement).

In January 2024, Orano Canada Inc. and Denison announced the planned restart of uranium mining operations at the McClean Lake property. Approximately 800,000 pounds of U308 (100% basis) are targeted for production from McClean North in 2025, with approximately 3.0 million pounds of U308 (100%) basis identified for potential additional from a combination of the McClean North and Caribou deposits during the years 2026 to 2030.