Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) announced that it has signed a term sheet to option a 75% interest in the 3,737-hectare Ascent Project in the eastern Athabasca Basin to Summit Fusion Pty Ltd, a privately-owned Australian company.
The uranium exploration company said during the first stage, Summit Fusion can earn a 50% interest in the Ascent Project by completing cash payments totaling $200,000, arranging for the issuance of $200,000 worth of shares and incurring $3 million of expenditures, which must be completed within two years of the option being exercised.
During the second stage, Summit Fusion can increase their interest in the Project to 75% 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 million of expenditures, which must be completed within a year from the beginning of Stage 2.
"The company now has over 22 million dollars committed to our exploration programs over the next three years," Standard Uranium CEO Jon Bey said in a statement.
"Heading into the 2024 exploration season, we will have a minimum of six exploration programs underway with four of those being drill programs at Sun Dog, Canary, Ascent and Davidson River projects," he added.
Standard Uranium noted that if within five years of completing the second stage a bankable feasibility study on a defined mineral resource is completed, Summit Fusion has the option to acquire the remaining 25% interest in the Ascent Project by making a payment equivalent to the value of the remaining 25% interest, with such value determined by an independent third party.
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 75,895 hectares in the world-class Athabasca Basin in Saskatchewan, Canada.