Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) told investors it has signed a letter of intent (LOI) with International Sustainable Energy Mining Corp, granting it the option to acquire 100% of its Sun Dog Project in Saskatchewan's northwestern Athabasca Basin.
Under the LOI dated September 18, 2023, the company said International Sustainable Energy Mining will be granted the option by completing three years of exploration and making a series of cash and equity payments. Standard Uranium’s technical team will be the operator of the exploration program for the duration of the three-year program.
In addition to cash and equity payments of $750,000 each and exploration expenditures totalling $9.5 million staggered over the three years, the company said International Sustainable Energy Mining is required to complete a going public transaction within sixty days in order to complete the exercise of the option.
Following that, Standard Uranium will retain a 2% net smelter returns royalty on the Sun Dog project, half of which may be purchased back at any time prior to commercial production for a one-time cash payment of $1 million.
“The company is pleased to announce our first property transaction since switching to a project generator business model in July,” commented Standard Uranium chairman and CEO Jon Bey in a statement.
“We are excited to confirm the Sun Dog project will have three additional years of exploration by our technical team, while being funded by our Optionee. The Sun Dog project has exceptional potential for a high-grade uranium discovery, and we are looking forward to a 2024 drill program.”
The company said completion of the transaction remains subject to due diligence and the negotiation of a definitive agreement, which it expects by September 28, 2023.
The deal is at arms-length and no finders’ fees or commissions are payable in connection with the completion of the transaction contemplated by the LOI. it added.
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.
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.
Contact the author at stephen.gunnion@proactiveinvestors.com