Proactive Investors - Standard Uranium Ltd. (TSXV:STND), the Canadian exploration company, signed a deal with Atco (TSX:ACOx) Mining Inc (CSE:ATCM) providing it with options to acquire a 75% interest in its Atlantic Project.
Located in the eastern Athabasca (TSX:ATH) Basin, the 3,061-hectare project will be on offer to ATCO through options which extend over three years.
As part of the deal, consideration payments are expected to total CA$430,000, starting at CA$100,000 in year 1, CA$120,000 in year 2 and CA$200,000 in the final year.
Consideration shares are expected to total CA$750,000, with the first year seeing Standard Uranium acquire CA$150,000 before the figure doubles to CA$300,000 in the following two years.
Exploration expenditure is expected to reach CA$6.3 million over the three years, while operator expenses are predicted to rise to CA$730,000.
Jon Bey, CEO and chairman at Standard Uranium, said: “We are pleased to announce our fourth option agreement since transitioning to a project generator in July 2023. The Company now has over thirty million dollars committed to our exploration programs over the next three years and nine million dollars committed to exploration in 2024.
“Heading into the 2024 exploration season, we now have 11 projects across the prolific Athabasca Basin, with a minimum of seven exploration programs planned with five of those being drill programs at the Atlantic, Sun Dog, Canary, Ascent, and Davidson River projects.”
The Atlantic Project hosts several uranium occurrences across its 6.5km share on an 18km “east-west trending conductive exploration trend”.
In June 2022, Standard Uranium identified “multiple subsurface density anomalies”, which may represent substantial alteration zones.
“Exploration efforts are focused on several high-priority target areas along several kilometres of under-tested conductors, targeting high-grade unconformity-related uranium mineralization,” the company added.
Shares in Standard Uranium are up over 7% on Monday.