Standard Uranium (STND.V) is a junior uranium explorer operating in the Athabasca basin in Saskatchewan, Canada. The Company holds interest in over 176,969 acres (71,617 hectares) there.
Today, Standard Uranium announced it has entered into a letter of intent (LOI) dated September 18th 2023, with International Sustainable Energy Mining Corp. (the optionee), an arms length private company.
The optionee will be granted the option to acquire a 100% interest in the 19,603 hectare Sun Dog Project located along the northwestern edge of the Athabasca Basin, by completing three years of exploration programs and a series of cash and equity payments. The Standard Uranium technical team will be the operator of the Sun Dog exploration programs for the entirety of the three year program.
Pursuant to the terms of the LOI, the Optionee can acquire the Sun Dog Project by making certain cash and equity payments and incurring exploration expenditures over the next three years as follows:
In addition to completion of the above cash payments, share issuances and exploration expenditures, the Optionee is required to complete a going public transaction within sixty days in order to complete the exercise of the Option.
Following exercise of the Option, the Company will retain a two percent net smelter returns royalty on the Sun Dog Project, half of which may be purchased back at any time prior to commercial production for a one-time cash payment of $1,000,000.
Jon Bey, CEO and Chairman commented, “The Company is pleased to announce our first property transaction since switching to a project generator business model in July. We are excited to confirm the Sun Dog project will have three additional years of exploration by our technical team, while being funded by our Optionee. The Sun Dog project has exceptional potential for a high-grade uranium discovery, and we are looking forward to a 2024 drill program.”
Completion of the transaction contemplated by the LOI remains subject to the satisfactory completion of due diligence and the negotiation of a definitive agreement. The Company anticipates completing a definitive agreement by September 28, 2023.
The stock broke above the major resistance zone around $0.03 which I told readers would be the bullish trigger. The stock then pulled back to retest the $0.03 zone which saw new buyers step in. This is just a typical and expected breakout and continuation of the market structure. The rising prices in the energy sector, including spot uranium, is playing a big role in this reversal. From the retest to recent highs of $0.09, the stock has ripped over 155% in less than two weeks!
Standard Uranium stock has also closed above the first resistance level at $0.06. As long as the stock remains above this price zone, the uptrend can continue. Recent price action is showing a range and it appears the stock could be stalling on momentum. A pullback and retest to the $0.06 zone is possible. If the uptrend continues, the next resistance zone comes in at $0.10.
