Stallion Discoveries Corp. has entered into a binding letter of intent with Atha Energy Corp. (“Atha”) pursuant to which the Company and Atha shall seek to enter into definitive agreements which shall give the Company an option (the “Option”) to acquire a 70% interest in 47 mineral claims covering 547,524 acres in Saskatchewan’s prolific Western Athabasca Basin (the “Project”) by acquiring the requisite interest from Atha, which currently holds a 90% interest in the Project.
The addition of the Project to Stallion’s existing holdings is expected to significantly expand the Company’s land package in the Western Athabasca Basin to total 715,450 acres. Should the Option be exercised, the Company may hold an aggregate 692,647 acres that could form the largest contiguous project in the Western Athabasca basin. This Project’s lands, together with the Company’s current holdings, share significant borders with projects held by Cameco Corporation, Orano Canada Inc., NexGen Energy Ltd., Denison Mines Corp. and F3 Uranium Corp., as illustrated in Figure 1. The scale and strategic location of the asset base is expected to provide numerous high-potential target zones along several major trends as Stallion continues its exploration efforts.
“We are thrilled to announce this transformational option to expand our position in the Western Athabasca basin. There is significant strategic value in gaining access to this land package that is directly adjacent to our current projects. We and other key stakeholders in the district believe that the Western Basin is underexplored and provides tremendous opportunity for exploration success. Stallion now has the potential to hold the largest continuous land package in the Western Athabasca basin, offering exploration synergies and more target areas as we execute on our exploration plan,” stated Stallion CEO, Mr. Drew Zimmerman.
As previously announced on March 1, 2023, the Company has commenced the first phase of its exploration program in the Athabasca Basin, completing the data acquisition phase announced on April 27, 2023, and will provide further updates to the program in the coming weeks.
Key Terms:
During the term of the Option, Stallion will be the sole operator of all exploration programs on the Project.
The Option will become exercisable upon completion of the last Milestone and will remain exercisable for one year thereafter. Milestones include:
i) issuance of 3,333,333 shares of Stallion within two business days following the definitive agreement
ii) accumulation of $3,311,770 Saskatchewan Exploration Expenditure Credits on the Project within 12 months
iii) accumulation of an additional $8,688,230 Saskatchewan Exploration Expenditure Credits (for an aggregate of $12,000,000) on the Project within 60 months
Following the exercise of the Option, Stallion and Atha will commence a joint venture on the Project with Stallion and Atha (including the carried over interest of the legacy owner) holding a 70% and a 30% interest, respectively
The transaction is subject to TSX Venture Exchange approval on the part of Stallion and the Canadian Securities Exchange on the part of Atha, execution of definitive agreements in respect of the Option, and satisfactory completion of due diligence.
