Canadian Uranium (CSE:CANU) has entered into an option acquisition agreement with Impact Uranium to acquire the King South Project in Saskatchewan, Canada.
The deal is pursuant to an amended property option agreement with Doctors Investment Group in consideration for 8.2 million shares in the capital of the company issued at C$0.45 per share.
Upon completing the option agreement, Canadian Uranium may acquire the property by paying C$200,000 ($209,796) on or before 13 March 2026, as well as paying C$350,000 on or before 13 March 2027 and C$500,000 on or before 13 March 2028.
Canadian Uranium is also required to incur C$100,000 in exploration expenditures by 30 July 2026, as well as an additional C$500,000 on or before 13 March 2027 and C$1.4 million on or before 13 March 2028.
Upon beginning commercial production at King South, if the company exercises the option, Canadian Uranium will pay a 1% net smelter return royalty to the optionor, which may be repurchased for C$1.5 million.
The closing of the deal is subject to receiving necessary approvals including shareholder approval.
The King South Project, covering 10,575 hectares, is located in the western mineral tenure zone within the eastern Athabasca region.
Canadian Uranium is an emerging explorer and developer focused on discoveries in the Athabasca Basin.
Write to Aaliyah Rogan at Mining.com.au
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