Vancouver, British Columbia, December 04, 2023 – Cosa Resources Corp. (TSX-V: COSA) (OTCQB: COSAF) (FSE: SSKU) (“Cosa” or the “Company”) is pleased to announce it has entered into an asset purchase agreement dated December 1, 2023 (the “Purchase Agreement”) for the acquisition (the “Acquisition”) of the Aurora Project in the Athabasca Basin, Saskatchewan (“Aurora”, or the “Property”).
Highlights
- Over 16,800 hectares added to Cosa’s 100% owned exploration portfolio with no encumbrances.
- Aurora covers 17 kilometres of the southeastern rim of the Athabasca Basin between Key Lake and the GMZ uranium discovery.
Keith Bodnarchuk, President and CEO, commented: “The discovery of the GMZ uranium zone in 2021 confirms that there is uranium discovery potential along the southeastern rim of the Athabasca Basin. Having recently demonstrated the value of modern and comprehensive geophysical coverage at our Ursa Project, we believe that underexplored lands like Aurora can be significantly upgraded with the same approach and we look forward to advancing this project towards drill testing.”
Andy Carmichael, VP Exploration, commented: “Cosa is excited to have acquired a large swathe of the Athabasca Basin’s southeastern rim just 16 kilometres from the Key Lake Mill. As discoveries in districts across the Basin have historically begun at the edges and progressed inward, this highly underexplored piece of ground is an excellent addition to our portfolio of uranium exploration projects in the Basin.”
About Aurora
The Property comprises seven contiguous claims totaling 16,896 hectares which cover 17 kilometres of the Athabasca Basin’s southeastern rim (Figure 1). The Property is located 16 kilometres east of the Key Lake Mill and former Key Lake Mine (Figure 2). Between 1983 and 2002 the Key Lake Mine produced 209.8 million pounds of U3O8 at an average grade of 2.3% U3O8. The Key Lake Mill is one of three licensed uranium mills in Saskatchewan and currently processes ore from the McArthur River Mine. Aurora is 40 kilometres southwest of the recently discovered GMZ uranium zone. Access and infrastructure at Aurora are excellent as an existing network of winter roads and the Provincial powerline supplying Key Lake and McArthur River extend through the western portion of the Property.
Aurora covers a prominent, complex zone of low magnetic susceptibility with its northern edge generally coincident with the current edge of the Athabasca Basin (Figure 2). In the portion of the Property within the Athabasca Basin the thickness of sandstone is expected be less than 100 metres, while less than 150 metres of basement is interpreted to have been eroded from the portion without sandstone. East-northeast trending magnetic lineaments parallel to the Key Lake trend are evident within the Property.
Aurora is underexplored. Modern, property-wide airborne electromagnetic (EM) and gravity surveys have not been completed, and groundwork since 1989 is limited to boulder sampling, soil sampling, and prospecting. Sparse drilling, most recently completed in 1979, is restricted to the sandstone-covered northern third of the Property.
Initial work by Cosa in Q2 and Q3 2024 is expected to include airborne EM, radiometric, and/or gravity surveys to generate target areas for follow-up.
Acquisition Details
Pursuant to the Purchase Agreement, Cosa has agreed to acquire a 100% unencumbered ownership of all seven mineral claims comprising Aurora from an arm’s length third party vendor (the “Vendor”) in exchange for $20,000 in cash and the issuance of 150,000 common shares of the Company (the “Consideration Shares”). The Consideration Shares will be subject to a four-month hold period pursuant to applicable Canadian securities laws. In addition, the Vendor has agreed to voluntary resale restrictions whereby 50% of the Consideration Shares will become free trading six months after closing of the Acquisition. The Acquisition is subject to standard closing conditions, including the approval of the TSX Venture Exchange (the “TSXV”).
Figure 1 – Cosa’s Portfolio of Athabasca Basin Region Uranium Exploration Projects
Figure 2 – Aurora Project Map
About Cosa Resources Corp.
Cosa Resources Corp. is a Canadian mineral exploration company based in Vancouver, BC and is focused on the exploration of its uranium properties in northern Saskatchewan. The portfolio includes eleven uranium exploration properties totaling over 180,000 ha across the Athabasca Basin region.
The team behind Cosa has a track record of success in Saskatchewan, with several decades of combined experience in uranium exploration, discovery, and development in the province.
Qualified Person
The Company’s disclosure of technical or scientific information in this press release has been reviewed and approved by Andy Carmichael, P.Geo., Vice President, Exploration for Cosa. Mr. Carmichael is a Qualified Person as defined under the terms of National Instrument 43-101. This news release refers to neighboring properties in which the Company has no interest. Mineralization on those neighboring properties does not necessarily indicate mineralization on the Company’s properties.
Contact
Keith Bodnarchuk, President and CEO
info@cosaresources.ca
+1 888-899-2672 (COSA)
Cautionary Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Forward-looking statements in this news release include, among others, statements relating to: the exploration, development, and production at the Company’s mineral projects; obtaining the required TSXV approval(s); and completion of the acquisition of the Property and the timing thereof.
Forward‐looking statements and forward‐looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of the Company, future growth potential for the Company and its business, and future exploration plans are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of uranium and other commodities; no escalation in the severity of public health crises; costs of exploration and development; the estimated costs of development of exploration projects; the Company’s ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect the Company’s respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward‐looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; the ongoing military conflict around the world; general economic factors; and the factors identified under the caption “Risk Factors” in the Company’s management discussion and analysis and other public disclosure documents.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.