Traction Uranium Issues Shares in Connection with Grease River Property Option Agreement

CALGARY, Alberta, Jan. 16, 2024 (GLOBE NEWSWIRE) -- Traction Uranium Corp. (CSE: TRAC) (OTC: TRCTF) (FRA: Z1K) (the “Company” or “Traction”) is pleased to announce that, in connection with the mineral property option agreement (the “Agreement”) between the Company and Forum Energy Metals Corp. (the “Optionor”) dated February 3, 2023 (the “Effective Date”), as amended, the Company has issued a further 250,000 common shares in its capital to fulfill its obligations to date in accordance with the terms and conditions of the Option Agreement.

Pursuant to the Option Agreement, as previously disclosed in the news release dated February 7, 2023, the Company has the right, at its option, to acquire up to a 100% interest in the Grease River Property located in Athabasca Basin, Northern Saskatchewan, Canada (the “Property”) in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into three phases.

Phase One

The Company is entitled to acquire a 51% interest in the Property (the “First Option”) by paying an aggregate of $250,000, issuing an aggregate of 1,625,000 common shares (the “Phase One Consideration Shares”) and funding an aggregate of $3,000,000 in exploration expenditures on the Property in scheduled installments by December 31, 2025. The Company will become operator of the Property if it exercises the First Option. To date, a total of 375,000 Phase One Consideration Shares have been issued to the Vendor.

Phase Two

If the Company exercises the First Option, then it can acquire an additional 19% interest in the Property, for a total interest of 70% (the “Second Option”), by paying an aggregate of $700,000 in cash, issuing an aggregate of 2,500,000 common shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2027.

Phase Three

If the Company exercises the Second Option, then it can acquire an additional 30% interest in the Property, for a total interest of 100% (the “Third Option”), by paying an aggregate of $1,000,000 in cash, issuing an aggregate of 3,000,000 common shares and funding an aggregate of $3,000,000 in exploration expenditures on the Property by December 31, 2028.

If the Third Option is exercised, the Company would also be required to (i) grant the Optionor a 2% net smelter returns royalty (the “NSR Royalty”), (ii) pay an additional $1,000,000 upon completion of a preliminary economic assessment this as term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) in respect of the Property, (iii) pay an additional $2,000,000 to the Optionor upon completion and disclosure of a NI 43-101 compliant feasibility study‎, and (iv) pay an additional $5,000,000 to the Vendor upon commencement of commercial production on the Property.