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Terra Uranium’s capital raising nears completion as ATHA Energy deal finalisation looms

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By Colin Hay - 
Terra Uranium T92 SPP finalisation
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Terra Uranium (ASX:T92) is set for a run of important news before the end of the month, with announcements to be made on the completion of capital raising and further developments with its proposed ATHA Energy deal.

Today sees the closing of Terra Uranium’s share purchase plan (SPP), which opened earlier this month following the company’s two-tranche placement that secured firm commitments to raise $800,000.

Funds raised under the SPP and the placement will be used by the company to advance its portfolio of highly prospective Athabasca Basin-based uranium exploration projects and to partially cover the purchase price payable to the vendor of the Amer Lake uranium project.

ATHA Energy deal

Terra has also revealed that it expects to make a further announcement in the coming days related to the finalisation of its definitive option and joint venture agreement with ATHA Energy.

When finalised, ATHA will potentially acquire up to 60% of Terra’s Pasfield Lake project, while Terra will potentially acquire up to 70% of ATHA’s Spire and Horizon projects.

The Spire-Horizon projects are made up of 12 mineral claims totalling 60,965 hectares considered prospective for high-grade uranium mineralisation similar to the nearby Atha Gemini discovery.

Exploration plans

Once the deals are wrapped up, Terra and ATHA are set to undertake significant exploration activities over the next 12 months.

ATHA has commited to drill the priority Pasfield T4 target in 2025, with the T3 target also a possibility.

Previous work at Pasfield identified geophysical signatures comparable to the large MacArthur River and Cigar Lake deposits.

The company is already planning an active program at its Athabasca projects, with field work including road access and drilling fully permitted for 2025.

Extensive portfolio

Aside from the projects involved in the ATHA deal, Terra holds a 100% interest in almost 30 claims covering a total of 1,203 sq km.

These claims form the Engler Lake, HawkRock, Parker Lake, Rapid River and Yurkowski Lake projects.

The projects are located in the Cable Bay Shear Zone on the eastern side of the uranium-rich Athabasca Basin in Saskatchewan, approximately 80km to the west-north-west of multiple operating large uranium mills, mines and known deposits.