Standard Uranium (STND.V) is a junior uranium explorer operating in the Athabasca basin in Saskatchewan, Canada. The Company holds interest in over 187,542 acres (75,895 hectares) in the world’s richest uranium district.
There was big news last week with the Uranium City Vision with Aero Energy and Fortune Bay Corp resulting into a district-scale exploration opportunity.
Today, Standard Uranium announced it has signed a definitive option agreement dated December 20, 2023, with Mamba Exploration Limited, an arms-length company listed on the Australian Securities Exchange. Pursuant to the Option Agreement, the Optionee has been granted an option to earn a 75% interest over three years in the 7,302-hectare Canary Project located in the eastern Athabasca Basin. The Option Agreement gives effect to the term sheet previously signed with Allora Resources Pty. Ltd., dated October 30, 2023, which was assigned to the Optionee.
The Company’s Canary project is situated in the Mudjatik geological domain where several recent discoveries have been made, including IsoEnergy’s Hurricane deposit 11 km directly to the south, and is significantly underexplored relative to adjacent magnetic low/electromagnetic conductor corridors.
Jon Bey, CEO and Chairman, commented “The Company is pleased to welcome the Mamba exploration team to the Athabasca Basin, Saskatchewan. We are excited to confirm the Canary project will have three partner-funded years of exploration run by our technical team. The Canary project has exceptional potential for a high-grade1 unconformity-related uranium discovery, and we are looking forward to the inaugural drill program in H1 2024.”
The Option is exercisable by the Optionee in three stages as shown in the table above. During the first stage, the Optionee can earn a fifty percent interest in the Canary Project by completing cash payments totalling $200,000, arranging for the issuance of $200,000 worth of Optionee shares to the Company and incurring $3,000,000 of expenditures, all within the first two years of the Option.
After earning a fifty percent interest, the second stage will commence. During the second stage, the Optionee can increase its interest in the Canary Project to seventy-five percent by completing a further cash payment of $100,000, arranging for the issuance of a further $100,000 worth of Optionee shares to Standard Uranium and incurring an additional $3,000,000 of expenditures, all within the third year of the Option.
The stock is flat on the news at time of writing.
A critical zone is being tested on the charts. This is happening at a major support zone around the $0.045 zone. A break and close below this level would result in a drop back down to $0.02. However, the bulls are stepping and and defending this support as they have been doing so lately in the last few days and weeks.
A move higher could take us back to testing the downtrend line. A close above this downtrend line is what would get the stock going for a retest of the $0.10 zone.
