Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) announced that it has signed an agreement transferring ownership of 90% of the Brown Lake uranium project in Saskatchewan’s Athabasca Basin to Mustang Energy.
In consideration, Standard Uranium will receive 60,000 shares of Mustang.
Mustang will take on responsibility for all expenses associated with maintaining and developing the project, in which Standard Uranium will retain a 10% carried interest.
The Brown Lake Project, located near the southeastern margin of the Athabasca Basin, encompasses 312 hectares and lies just 13 kilometers from the Key Lake Mill.
With untested drill targets along 2.4 kilometers of magnetic low trends and fault structures, and its proximity to the Shift Lake Uranium Zone, Standard Uranium views the Brown Lake project as a promising target for potential high-grade basement-hosted and unconformity-related uranium mineralization.
The deal with Mustang offers upside for the company without additional capital investment, unlocking value from this non-core asset.
"Completing this transaction with Mustang Energy provides Standard Uranium shareholders with increased exposure to transactional and discovery upside," Standard Uranium VP exploration Sean Hillacre said in a statement.
"This is yet another example of our technical team continuing to identify areas with shallow drill targets and favorable geology for uranium discovery, and we look forward to creating additional value through advancing this project with the team at Mustang."