Stallion Gold Corp (TSX-V:STUD) is to acquire almost 30 hectares (Ha) covering six claims in the Western Athabasca basin in Saskatchewan - home to some of the world’s largest high-grade uranium discoveries.
The southern boundary of the land package is above Fission 3.0 Corp's Patterson Lake North project, which saw the recent discovery of ultra-high grade uranium (15 metres (m) at 6.97% uranium, including a high-grade 5.5m interval averaging 18.6% uranium).
And the project's northern end sits just east of the Shea Creek deposit held in a joint venture by UEX and Orano. Shea Creek lies 18 kilometres (km) south of the past-producing Cluff Lake mine.
Stallion has struck a share purchase deal among the company, private U92 Exploration Limited (U92) and the shareholders of U92 to acquire the latter, which holds the claims. It expects to begin a work program on the claims in the first quarter of 2023.
Next major area
"We are excited to be acquiring projects in this region of the Athabasca Basin, which is poised to become the next major area for new uranium operations in Northern Saskatchewan," Drew Zimmerman, the CEO of Stallion, told investors in a statement.
"Given the extreme proximity of these claims to recent high-grade discoveries, we see tremendous potential in creating value for all stakeholders by deploying the exploration techniques being utilized to the area.
"Our leadership and advisory team is comprised of leading Uranium exploration experts including some of the most prolific Athabasca Basin stakeholders and we will leverage this expertise in our work programs and in evaluating other opportunities in the Basin," he added.
Under the deal, Stallion Gold will pay the shareholders of U92 C$300,000 and issue 3 million company shares at a deemed price of C$0.10 each pro rata to holders of U92 common shares.
Closing of the transaction will take place following TSX-V approval.
Also in the statement, Stallion Gold said it will change its name to Stallion Discoveries Corp, pending TSX venture exchange approval.
The firm said the new name better reflected its strategic focus as a large-scale, multi-resource project explorer.
Shares gained 17% in early deals to stand at C$0.20.
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Contact the writer at giles@proactiveinvestors.com