Thunderbird Resources (ASX:THB) has entered into a binding option agreement with Mustang Energy Corporation (CSE:MEC) to sell 80% of its interest in the Cluff Lake North and Surprise Creek uranium projects in Canada.
Both projects, located in the Athabasca Basin, are considered prospective for uranium, while Surprise Creek is also considered prospective for copper.
Under stage one of the deal, Mustang Energy will earn an initial 60% stake and 51% stake in the Cluff Lake and Surprise Creek projects respectively, by issuing C$100,000 ($112,492) worth of shares and paying C$20,000 cash to Thunderbird.
Mustang Energy will also spend C$1 million in expenditure each on both projects.
Once stage one has been completed, the company will pay a further C$100,000 in cash to Thunderbird for both projects.
Subject to Mustang Energy earning the stage one interest, Thunderbird will grant the company an additional 20% interest in Cluff Lake (also known as Moose Lake) by spending C$2 million worth of expenditure on exploration.
Upon satisfying, Mustang Energy will pay $50,000 cash and issue a further $100,000 worth of shares to Thunderbird.
Meanwhile for Surprise Creek, Thunderbird will grant Mustang Energy a further 29% interest by spending C$2 million in expenditure.
Once completed, Mustang Energy will pay a further C$50,000 cash, issue C$100,000 worth of shares and execute a formal royalty deed with Thunderbird.
Chairman George Ventouras says Mustang Energy has numerous projects in and around the Athabasca Basin region and these projects will complement its portfolio in a synergistic way.
“This agreement paves the way for focused exploration work to be directed at these highly prospective projects by a capable explorer with significant in-country experience, while freeing Thunderbird up to continue to focus on its exciting Rockvale and Kookabookra gold and antimony projects in New South Wales,” Ventouras says.
“Our team will be assisting Mustang as required and we are looking forward to ground-based work commencing shortly at both projects.
“The market sentiment towards uranium exploration has pivoted recently and this association could not have come at a better time for Thunderbird — with the agreement structured in a way that maintains exposure for our shareholders to future exploration success.”
Thunderbird notes it has sold its shares in Firetail Resources (ASX:FTL) for $980,000. These funds will be used towards exploration on the New South Wales projects, as well as administration costs.
Mustang Energy Corp is a resource explorer focused on acquiring and developing uranium and critical mineral assets. The company holds 92,211 hectares of land in the Athabasca Basin.
Write to Aaliyah Rogan at Mining.com.au
Images: Thunderbird Resources
