Traction Uranium Corp., a company listed on the Canadian Securities Exchange under the ticker CSE: TRAC, has announced a significant development in the uranium sector. The firm has entered into an option agreement with Cosa Resources Corp., effective as of February 10, 2026. This agreement grants Traction Uranium the right to earn up to an 80% interest in the Aurora uranium project, located in northern Saskatchewan within the southeastern margin of the Athabasca Basin.
Project Details and Strategic Location
The Aurora project encompasses 12 claims, totaling approximately 18,773 hectares. It spans about 17 kilometres of prospective strike along the Athabasca Basin's southeastern edge, positioned roughly 16 kilometres east of the Key Lake uranium mill and past-producing mine. Geological assessments indicate that sandstone cover is less than 100 metres thick in the northern portion of the project and absent elsewhere, suggesting favorable conditions for uranium exploration.
Historical data reveals that no diamond drilling has been conducted at Aurora since 1979. However, a review of old drill logs has identified multiple zones of hydrothermal alteration, hinting at potential uranium deposits. In 2024, Cosa Resources completed airborne gravity-gradient and VTEM surveys, which helped outline initial target areas for further investigation.
Earn-In Phases and Financial Commitments
Under the terms of the option agreement, Traction Uranium can earn its stake in the Aurora project by solely funding exploration work and completing a series of cash and share payments over five distinct phases. The company has the flexibility to accelerate the earn-in process and advance exploration activities at its discretion.
If Traction Uranium terminates the agreement before completing Phases 1 and 2, all consideration paid will be forfeited, and Cosa Resources' interest will revert to 100%. During the earn-in period, Cosa Resources will serve as the operator, entitled to charge an operator fee. Upon fulfilling the Phase 4 requirements, which grant a 65% interest, Traction Uranium will have the option to assume operatorship of the project.
The financial breakdown includes exploration expenditures totaling $9.15 million, cash payments of $1.5 million, and the issuance of 5 million shares of Traction Uranium to Cosa Resources. Any shares issued will be subject to a statutory hold period of four months and one day from the issuance date, in compliance with Canadian securities laws.
Qualified Person and Technical Oversight
Dr. Jared Suchan, CEO and Director of Traction Uranium Corp., who is a Qualified Person under NI 43-101 standards, has reviewed and approved the scientific and technical contents of this news release. For detailed information on the company's quality assurance and quality control processes, stakeholders are directed to its most recently filed technical report available on SEDAR+.
This agreement marks a strategic move for Traction Uranium as it seeks to expand its footprint in the uranium mining industry, leveraging the promising geology of the Athabasca Basin, a region renowned for its rich uranium deposits.
