Pioneer Lithium (ASX:PLN) has entered into binding agreements to purchase two uranium projects, Skull Creek and Warmbad, in the US and Namibia, respectively.
These acquisitions broaden the company’s critical energy minerals portfolio with exploration and development potential in uranium-friendly jurisdictions.
Skull Creek, located in Colorado, hosts uranium mineralisation within the Sego Sandstone formation with a focus on a 17km strike on the northern limb of the Red Wash Syncline. Warmbad, located in southern Namibia, has multiple high-priority targets with uranium mineralisation in granitic rocks.
Under the agreement, Pioneer will purchase Lia Energy Corporation, which owns the Skull Creek Project, for $650,000 cash and 2.75 million shares at $0.20 per share.
The company will also pay a deferred consideration of $1 million in cash upon announcing a resource estimate of at least 30 million pounds of uranium ore @ 300 parts per million (ppm) triuranium octoxide or greater.
Meanwhile, Pioneer will also acquire Rodon Metals, which owns the Warmbad Project, for $200,000 cash and 1.5 million shares at $0.20 each.
The company will also pay $1.5 million cash upon announcing a resource estimate of at least 30 million pounds of uranium ore between 101ppm and 199ppm triuranium octoxide.
Pioneer will pay an additional $1 million cash upon achieving a resource estimate of 30 million pounds of uranium ore with a minimum grade of 200ppm triuranium octoxide or greater.
Pioneer has already completed due diligence for both projects and is waiting to receive required regulatory, statutory, and government approvals. The transaction is anticipated to be completed this quarter.
Executive Chairman Robert Martin says these acquisitions represent a defining moment for Pioneer, propelling the company into the high-growth uranium sector.
“Both assets have had a plethora of work completed with 31,000m of drilling at Warmbad with Skull Creek having a reported historical resource that unfortunately requires more detailed work to be able to report under the current JORC code,” Martin says.
“The company intends to methodically work through these data sets and historical records to help define and delineate future work programs.
“As uranium takes centre stage in the shift to low carbon energy solutions, these strategic additions enhance our portfolio that includes our Root Lake lithium prospects to create a pathway to substantial value creation in the critical minerals sector in 2025.”
To support the acquisitions, Pioneer is conducting a placement to raise $1.675 million at an issue price of $0.20 per share – a 7.5% discount to the last closing price of $0.215.
The funds will be used to advance the new uranium projects with a portion allocated towards exploration activities, project development, acquisition costs, and general working capital.
62 Capital will act as the sole lead manager to the placement.
Meanwhile, Pioneer plans to conduct a field program this quarter at Skull Creek to identify and confirm uranium-bearing strata, as well as complete sampling and geological programs.
At Warmbad, Pioneer will obtain and review historical exploration data as well as conduct modern surveying. Once completed, the company will conduct validation drilling and target new anomalies and untested paleochannels.
Pioneer Lithium is a mineral explorer which owns lithium prospective projects in Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Pioneer Lithium
