Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) has signed a definitive option agreement with ATCO (TSX:ACO.X) Mining for the Atlantic project, with the potential for significant exploration funding and partnership development in the eastern Athabasca Basin.
Jon Bey, CEO of Standard Uranium expressed enthusiasm about the partnership, telling shareholders that the company “is pleased to welcome the ATCO (TSX:ACO.X) Mining team” to the Athabasca Basin.
“The Atlantic project has exceptional potential for a high-grade unconformity-related uranium discovery, and we are looking forward to kicking off the 2024 exploration season with the Atlantic drill program in beginning in the immediate future,” Bey added.
Sean Hillacre, President & VP Exploration for Standard Uranium, highlighted the exploration focus. "Our technical team and new partners at ATCO are excited to begin drilling the Atlantic project imminently, exploring for high-grade unconformity-related uranium mineralization."
Over the three-year agreement term, Standard Uranium is slated to receive increasing consideration payments and shares from ATCO Mining.
In the first year, Standard will receive $110,000 alongside 3 million shares, with exploration expenses set at $1.3. million and an operator fee of $130,000.
By the second year, payments rise to $120,000 and 6 million shares, with exploration expenses climbing to $2 million and an operator fee of $240,000.
In the final year, consideration payments peak at $200,000, with the same share allocation, alongside $3 million in exploration expenses and an operator fee of $360,000.
Overall, Standard Uranium stands to gain $430,000 in payments, 15 million shares, $6.3 million in exploration funding, and an operator fee totaling $730,000 across the partnership's duration.
Standard Uranium is a uranium exploration company and emerging project generator with an interest in over 209,867 acres in the Athabasca Basin.
The company has completed four joint venture earn-in partnerships on its Sun Dog, Canary, Atlantic and Ascent projects totaling over $31 million in work commitments over the next three years.