Greenvale Energy (ASX:GRV) has executed a binding term sheet to acquire uranium exploration rights for the Pine Creek Uranium Project from Patronus Resources (ASX:PTN).
Covering 1,250km2 across the Pine Creek Orogen in the Northern Territory, the project includes multiple granted exploration licences and mining leases.
Under the terms, Greenvale will issue 144.7 million ordinary shares to Patronus at $0.038 per share, valuing the transaction at $5.5 million.
The issue price represents a 12% premium to the 10-day volume-weighted average price (VWAP) and a 6% premium to the 30-day VWAP.
Combining the Pine Creek project with Greenvale’s adjoining Douglas River Project, the company’s uranium exploration portfolio now spans 2,466km2, establishing a ‘district-scale’ landholding.
Managing Director Alex Cheeseman says the acquisition is a “major step” that adds weight to the company’s existing uranium portfolio.
“The Pine Creek Uranium Project brings the high-grade Thunderball deposit into our portfolio together with a substantial pipeline of highly prospective exploration targets immediately adjacent to our existing Douglas River Project,” Cheeseman says.
“Importantly, this consolidates Greenvale’s strategic position across a large and highly prospective corridor within the Pine Creek region, allowing us to adopt a holistic exploration approach across a district-scale land package, with key geological structures traversing both the Pine Creek and Douglas River projects.”
The Pine Creek Project contains the Thunderball deposit, where recent drilling by Patronus returned 10m @ 25,381 parts per million triuranium octoxide from 145m, as well as 10m @ 12,264 ppm triuranium octoxide from 139m and 13m @ 7,045 ppm triuranium octoxide from 135m.
The Thunderball deposit contains a historical inferred resource of 829,000 tonnes @ 924ppm triuranium octoxide, for a total of 1.69 million pounds of contained triuranium octoxide.
With the right to conduct exploration activities on the project until 31 July 2026, Greenvale is planning a follow-up drilling program at Thunderball to test potential extensions down-plunge and down-dip, as well as along strike.
Regional fieldwork across other prospects are also set to begin. Workstreams include geological and structural mapping, as well as sampling to build on historical exploration results.
Meanwhile, an airborne magnetics-radiometrics program over the Douglas River Project is ongoing.
An extraordinary general meeting will also be held on or around late July 2026 to seek shareholder approval of the issuance of consideration shares.
Greenvale Energy is a mineral explorer focused on its uranium asset portfolio in the Northern Territory and Queensland.
Write to Paula Fabe at Mining.com.au
Images: Unsplash
