Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) announced that it has signed a definitive option agreement with Mamba Exploration Ltd (ASX:M24) for the Canary uranium project in the Athabasca Basin, Saskatchewan.
The company said that the optionee can earn a 75% interest over three years in the project by exercising the option in three stages.
During the first stage, the optionee can earn a 50% interest in the project by completing cash payments of $200,000, issuing $200,000 of Mamba Exploration shares to the company and incurring $3 million in exploration expenditures during two years.
In the second stage, the optionee can increase its interest to 75% by completing an additional cash payment of $100,000, issuing a further $100,000 in Mamba Exploration shares to the company and incurring another $3 million of exploration expenditures within the third year of the option.
“We are excited to confirm the Canary project will have three partner-funded years of exploration run by our technical team,” Standard Uranium CEO Jon Bey said in a statement.
“The Canary project has exceptional potential for a high-grade unconformity-related uranium discovery, and we are looking forward to the inaugural drill program in the first half of 2024.”
Standard Uranium vice president of exploration Sean Hillacre added: “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-grade unconformity-related uranium mineralization.”
Standard Uranium said the option agreement also gives effect to a term sheet previously signed with Allora Resources, dated October 30, 2023, which was assigned to the optionee.
Shares of Standard Uranium moved higher on the news ahead of Wednesday’s opening bell, with its Toronto-listed stock up 11.1% at C$0.05.
Standard Uranium is a uranium exploration company and emerging project generator poised for discovery in the world’s richest uranium district. It holds interest in more than 80,571 hectares in the world-class Athabasca Basin in Saskatchewan, Canada.