Standard Uranium options Canary to Allora Resources
2023-10-31 09:06 ET - News Release
Mr. Jon Bey reports
STANDARD URANIUM REACHES TERMS TO OPTION CANARY PROJECT IN EASTERN ATHABASCA BASIN
Standard Uranium Ltd. has signed a term sheet, dated Oct. 30, 2023, with Allora Resources Pty. Ltd. (the optionee), an arm's-length private company. Pursuant to the term sheet, the optionee will be granted the option to acquire up to a 100-per-cent interest in the 7,302-hectare Canary project located in the Athabasca basin.
Jon Bey, chief executive officer and chairman, commented: "Quickly reaching terms on our Canary project demonstrates the continued strong interest in our portfolio of projects fitting into our project generator model. We are currently in advanced discussions on six of our seven projects and have the goal of completing up to five project deals in 2024, which could total more than $40-million and commit $10-million towards exploration programs next year."
The Option is exercisable by the Optionee in three stages and is contingent on the Optionee completing a going public transaction on the Australian Securities Exchange (ASX). During the first stage, the Optionee can earn a fifty-percent interest in the Canary Project by completing cash payments totaling $200,000, arranging for the issuance of $200,000 worth of 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 their 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 shares, and incurring an additional $3,000,000 of expenditures, all within the third year of the Option. Following completion of the second stage, the Optionee can acquire the remaining interest in the Canary Project by completing a bankable feasibility study and completing a payment to the Company equivalent to the value of the remaining interest as determined by an independent third-party.
In the event the Optionee acquires less than a one-hundred percent interest in 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 expenditures. Following exercise of the Option, the Company will retain a one-and-one-half percent net smelter returns 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 Term Sheet is non-binding at this time and the grant of the Option remains subject to the satisfactory completion of due diligence by the Optionee along with the negotiation of definitive documentation. No finders' fee is payable by the Company in connection with the Option. 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)
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 187,542 acres (75,895 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 25,242 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.