Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) said on Monday it has signed a non-binding letter of intent with Vital Battery Metals granting the latter the option to earn a 75% interest in the Corvo uranium project in Canada’s eastern Athabasca Basin.
Under the proposed three-year agreement, Vital Battery Metals would acquire the stake by making $225,000 in cash payments, issuing $725,000 in shares, and funding $4.5 million in exploration expenditures.
Standard Uranium will serve as project operator during the option period and collect operator fees totaling just over $500,000.
"We are very pleased to have agreed to terms with our new partners at Vital Battery Metals to advance our Corvo project," said Jon Bey, Standard Uranium CEO.
"The global demand for nuclear energy requires more uranium exploration and high-grade discoveries. There is no better place on the planet to make these discoveries than the Athabasca Basin region."
Located outside the current margin of the Athabasca Basin, the 12,265-hectare Corvo project is considered prospective for shallow, high-grade basement-hosted uranium mineralization. Highlights include over 29 km of strike length along magnetic low trends, historic uranium hits of up to 0.065% U₃O₈, and surface samples grading up to 59,800 ppm U at the Manhattan Showing.
A high-resolution time domain electromagnetic survey was recently completed to refine drilling targets.
At the end of the three-year option period, the companies intend to form a joint venture for continued development of the project. Eagle Plains Resources Ltd. holds a 2.5% net smelter returns royalty on the project, with 1% of that buyable for $1 million.
Separately, Standard Uranium announced the resignation of chief financial officer Sean McGrath. CEO Bey will assume the role on an interim basis while the company searches for a replacement.