Standard Uranium Ltd. (“
Standard Uranium” or the
“
Company”) (TSX-V: STND) (OTCQB: STTDF)
(Frankfurt: FWB:9SU) is pleased to announce that it has signed a
definitive option agreement (the “
Option
Agreement”), dated December 20, 2023, with Mamba
Exploration Limited (the “
Optionee”), an
arms-length company listed on the Australian Securities Exchange.
Pursuant to the Option Agreement, the Optionee has been granted an
option (the “
Option”) to earn a 75% interest over
three years in the 7,302-hectare Canary Project located in the
eastern Athabasca Basin. The Option Agreement gives effect to the
term sheet previously signed with Allora Resources Pty. Ltd., dated
October 30, 2023, which was assigned to the Optionee.
The Option is exercisable by the Optionee in
three stages, summarized in Table 1. During the first stage, the
Optionee can earn a fifty percent interest in the Canary Project by
completing cash payments totalling $200,000, arranging for the
issuance of $200,000 worth of Optionee shares to the Company and
incurring $3,000,000 of expenditures, all within the first two
years of the Option.
After earning a fifty percent interest in the
Canary Project, the second stage will commence. During the second
stage, the Optionee can increase its interest in the Canary Project
to seventy-five percent by completing a further cash payment of
$100,000, arranging for the issuance of a further $100,000 worth of
Optionee shares to Standard Uranium and incurring an additional
$3,000,000 of expenditures, all within the third year of the
Option.
Jon Bey, CEO and Chairman, commented “The
Company is pleased to welcome the Mamba exploration team to the
Athabasca Basin, Saskatchewan. We are excited to confirm the Canary
project will have three partner-funded years of exploration run by
our technical team. The Canary project has exceptional potential
for a high-grade1 unconformity-related uranium discovery, and we
are looking forward to the inaugural drill program in H1 2024.”
Figure 1. Overview of the eastern Athabasca
Basin, highlighting Standard Uranium’s Canary project.
Canary Project
The Company’s Canary project is situated in the
Mudjatik geological domain where several recent discoveries have
been made, including IsoEnergy’s Hurricane deposit 11 km directly
to the south, and is significantly underexplored relative to
adjacent magnetic low/electromagnetic (‘EM’) conductor
corridors.
The Company completed a high-resolution ground
DC/IP survey on the project in 2022, providing valuable structural
and lithological information in the area to identify conductive
bodies and potential fault systems. Significant resistivity-low
anomalies are present along the northern conductor on the project,
potentially representing substantial hydrothermal alteration zones
in the sandstone and proximal to basement conductors.
Additionally, legacy GeoTEM data defining the
southeastern EM corridor on the project is directly comparable to
the response and scale of the GeoTEM conductor which hosts the
Roughrider/J-zone uranium deposits futher to the south. Highly
anomalous geochemistry and favorable alteration was returned from
historical drill hole CRK-137 along the southeastern conductor,
providing an exceptional follow-up target. The project is
drill-ready with multiple overlapping geophysical anomalies having
been identified on the property, coinciding with previously
identified conductive corridors and anomalous historical drill
results.
“Our exploration thesis and targeting strategy
in this exciting district had been bolstered by the high-quality
geophysical surveys and interpretations completed last year,” said
Sean Hillacre, President & VP Exploration for the Company. “Our
technical team and new partners at Mamba are excited to begin
drilling the significant anomalies identified on Canary for the
first time, exploring for high-grade1 unconformity-related uranium
mineralization.”
1 The Company considers uranium mineralization
with concentrations greater than 1.0 wt% U3O8 to be
“high-grade”.
Table 1. Summary of Option Agreement Terms
Option Stage |
Cash |
Shares |
Exploration Expenditures |
Operator Fee (10%) |
Equity Earned |
Year 1 |
$100,000 |
$100,000 |
$1,000,000 |
$100,000 |
- |
Year 2 |
$100,000 |
$100,000 |
$2,000,000 |
$200,000 |
50% |
Year 3 |
$100,000 |
$100,000 |
$3,000,000 |
$300,000 |
25% |
TOTAL |
$300,000 |
$300,000 |
$6,000,000 |
$600,000 |
75% |
If within five years of completing the second
stage, a bankable feasibility study on a defined mineral resource
is completed, the Optionee has the option to acquire the remaining
25% interest in the Canary Project by making a payment to the
Company equivalent to the value of the remaining 25% interest, with
such value determined by an independent third party.
Upon completion of the first two earn-in stages
on the Canary Project, the parties intend to form a joint venture
for the further development of the Project. During the first two
stages of the Option, the Company will act as the operator of the
Canary Project and will be entitled to charge a ten percent
operator fee on exploration expenditures. Following exercise of the
Option, the Company will retain a one-and-one-half percent net
smelter returns (NSR) royalty on the Canary Project, of which
one-half percent may be purchased back at any time for a one-time
cash payment to the Company of $500,000.
The scientific and technical information
contained in this news release has been reviewed, verified, and
approved by Sean Hillacre, P.Geo., President and VP Exploration of
the Company and a “qualified person” as defined in NI 43-101.
About Standard Uranium (TSX-V:
STND)
We find the fuel to power a
clean energy future
Standard Uranium is a uranium exploration
company and emerging project generator poised for discovery in the
world’s richest uranium district. The Company holds interest in
over 199,095 acres (80,571 hectares) in the world-class Athabasca
Basin in Saskatchewan, Canada. Since its establishment, Standard
Uranium has focused on the identification, acquisition, and
exploration of Athabasca-style uranium targets with a view to
discovery and future development.
Standard Uranium’s Atlantic, Canary, Ascent,
Corvo, and Rocas Projects, in the eastern Athabasca Basin, comprise
twenty-three mineral claims over 29,520 hectares. The eastern basin
projects are highly prospective for unconformity related and/or
basement hosted uranium deposits based on historical uranium
occurrences, recently identified geophysical anomalies, and
location along trend from several high-grade uranium
discoveries.
Standard Uranium's Sun Dog project, in the
northwest part of the Athabasca Basin, Saskatchewan,
is comprised of nine mineral claims over 19,603 hectares. The Sun
Dog project is highly prospective for basement and unconformity
hosted uranium deposits yet remains largely untested by sufficient
drilling despite its location proximal to uranium discoveries in
the area.
Standard Uranium’s Davidson River Project, in
the southwest part of the Athabasca Basin, Saskatchewan, comprises
ten mineral claims over 30,737 hectares. Davidson River is highly
prospective for basement-hosted uranium deposits due to its
location along trend from recent high-grade uranium discoveries.
However, owing to the large project size with multiple targets, it
remains broadly under-tested by drilling. Recent intersections of
wide, structurally deformed and strongly altered shear zones
provide significant confidence in the exploration model and future
success is expected.
For further information contact:
Jon Bey, Chief Executive Officer, and Chairman1030 West Georgia
Street, Suite 907Vancouver, BC V6E 2Y3Tel: 1 (306) 850-6699E-mail:
info@standarduranium.ca
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking
statements” or “forward-looking information” (collectively,
“forward-looking statements”) within the meaning of applicable
securities legislation. All statements, other than statements of
historical fact, are forward-looking statements and are based on
expectations, estimates and projections as of the date of this news
release. Forward-looking statements include, but are not limited
to, statements regarding: execution of the definitive agreement;
conditions to the exercise the Option; completion of the Optionee’s
go public transaction; the timing and content of upcoming work
programs; geological interpretations; timing of the Company’s
exploration programs; and estimates of market conditions.
Forward-looking statements are subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those
expressed or implied by forward-looking statements contained
herein. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Certain
important factors that could cause actual results, performance or
achievements to differ materially from those in the forward-looking
statements are highlighted in the “Risks and Uncertainties” in the
Company’s management discussion and analysis for the fiscal year
ended April 30, 2023, dated August 24, 2023.
Forward-looking statements are based upon a
number of estimates and assumptions that, while considered
reasonable by the Company at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies that may cause the Company’s actual financial
results, performance, or achievements to be materially different
from those expressed or implied herein. Some of the material
factors or assumptions used to develop forward-looking statements
include, without limitation: that the transaction with the Optionee
will proceed as planned; the future price of uranium; anticipated
costs and the Company’s ability to raise additional capital if and
when necessary; volatility in the market price of the Company’s
securities; future sales of the Company’s securities; the Company’s
ability to carry on exploration and development activities; the
success of exploration, development and operations activities; the
timing and results of drilling programs; the discovery of mineral
resources on the Company’s mineral properties; the costs of
operating and exploration expenditures; the presence of laws and
regulations that may impose restrictions on mining; employee
relations; relationships with and claims by local communities and
indigenous populations; availability of increasing costs associated
with mining inputs and labour; the speculative nature of mineral
exploration and development (including the risks of obtaining
necessary licenses, permits and approvals from government
authorities); uncertainties related to title to mineral properties;
assessments by taxation authorities; fluctuations in general
macroeconomic conditions.
The forward-looking statements contained in this
news release are expressly qualified by this cautionary statement.
Any forward-looking statements and the assumptions made with
respect thereto are made as of the date of this news release and,
accordingly, are subject to change after such date. The Company
disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws. There can
be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Neither the TSX-V nor its Regulation Services
Provider (as that term is defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this
release.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4b7ad4ad-d677-4902-9369-a5cde6902691
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