ASX-listed critical minerals company Cosmos Exploration on Friday announced its move into uranium with the acquisition of an 80% interest in the Fenix project, in Canada.

The 162.7 km² project is located in the emerging mining district of the Thelon basin, in Nunavut.

“Cosmos has been searching for an attractive uranium opportunity for some time now and believes this to be a standout acquisition in a world-class, high-grade uranium province. The presence of high-grade boulders and historic intercepts indicates that there is likely a deposit nearby,” said executive chairperson Jeremy Robinson.

Explaining why Cosmos was keen for a uranium project, the company highlighted that its technical director, Leo Horn, had many years’ experience working in the Athabasca uranium district of Saskatchewan. During that time, he led the team that conducted discovery and resource definition drilling on several high-grade uranium deposits including Shea Creek at 95.6-million pounds of uranium oxide (U₃O₈) and Raven Horseshoe at 37.4-million pounds of U₃O₈.

With uranium prices having strengthened in recent months, Cosmos said it believed the forecast for demand would be strong in the coming years and that it was an opportunistic time for the discovery of high-grade uranium in world-class terrains.

Other companies with significant success in the Thelon basin include Forum Energy and Atha Energy.

Cosmos aims to start with exploration activities on Fenix in the 2024 summer season.

The company is acquiring the right to earn an 80% interest in the claims from Northex Capital Partners for an upfront C$50 000 in cash and C$100 000 in shares. Thereafter, it may acquire the earn-in interest by spending C$1-million on exploration within three years and upon satisfying the expenditure requirement, paying another C$100 000 in cash and issuing C$100 000 in shares.

As part of the transaction, Cosmos will undertake a two-tranche placement to raise A$860 672 through issuing 20.25-million shares.