Trinex Minerals (ASX:TX3) has executed an agreement with ALX Resources (TSX-V:AL) to acquire up to a 75% interest in the Gibbons Creek Uranium Project in Saskatchewan, Canada.
Gibbons Creek comprises eight mineral licences covering a 139km2 area in the northern flank of the Athabasca Basin.
The basin currently supplies about 20% of the world’s uranium and hosts several large mines including Cameco’s McArthur River and Cigar Lake mines, which collectively have reserves of 165.5 million pounds.
Under the agreement, Trinex, which has a market capitalisation of $5.23 million, made initial execution payments of C$100,000 ($110,658) in cash and about 68.7 million shares, worth C$250,000, to ALX.
The company has the option to acquire an initial 51% interest by paying a further C$600,000 in cash, issuing C$1.05 million worth of shares and spending at least C$3 million on exploration.
Trinex can increase its ownership to 75% by making further cash payments totalling C$650,000, issuing shares worth C$950,000 and spending a further C$2.5 million on exploration.
Managing Director Will Dix says the acquisition complements the company’s already prospective portfolio of lithium projects and provides an opportunity for the company to gain exposure to energy minerals in Canada.
“We have had some promising initial observations from our maiden drilling campaign, where preliminary results suggest the presence of high-grade mineralisation in the target area identified from historic drilling,” he says.
Dix, who will be presenting at the RIU Sydney Resources Round-Up conference at 8.45am tomorrow (9 May), says the company will update the market on further drill results and its expanded exploration plans in due course.
The RIU Sydney Round-Up conference, which Mining.com.au is an official media partner of this year, takes place from 7 to 9 May at the Hyatt Regency Hotel in Darling Harbour.
Following today’s news, Trinex’s share price closed trade 33.33% higher to $0.004.
Additionally, the company notes the second tranche of a previously announced placement is subject to shareholder approval. A meeting is scheduled to be held on 15 May 2024.
The placement proceeds will go towards funding the company’s Canada exploration expenditure obligations and general working capital purposes.
Trinex Minerals is an Australia-based critical minerals-focused explorer that has several projects in Canada, Western Australia, South Australia, and the Northern Territory.
Write to Aaliyah Rogan at Mining.com.au
Images: Trinex Minerals
