Skyharbour Enters into Agreement with Mustang Energy to Option its 914W Uranium Project Located in the Athabasca Basin, Saskatchewan
Deal Adds Second Tiered Uranium Development Asset to Mustang's Athabasca Basin Portfolio
Highlights:
- Skyharbour to grant Mustang Energy an option to acquire an 80% interest in the 914W uranium project.
- Mustang Energy can earn-in its 80% interest by paying Skyharbour $1.3 million in cash and shares over a three-year period and spending $6 million on exploration over a five-year period.
- The 914W uranium project is located in the Athabasca Basin, Saskatchewan, and is considered a prospective uranium exploration project.
Skyharbour Resources Ltd. (TSX.V: SYH) ("Skyharbour") is pleased to announce that it has entered into an option agreement (the "Agreement") with Mustang Energy Corp. (ASX: MSE) ("Mustang") to earn an 80% interest in Skyharbour's 914W Uranium Project (the "Project"), located in the Athabasca Basin, Saskatchewan.
The Agreement provides Mustang with the exclusive option (the "Option") to acquire an 80% interest in the Project by fulfilling the following obligations:
- Issuing to Skyharbour 3,522,727 common shares of Mustang within 5 business days of signing the Agreement.
- Paying to Skyharbour $350,000 in cash on the first anniversary of the Agreement.
- Paying to Skyharbour $300,000 in cash on the second anniversary of the Agreement.
- Paying to Skyharbour $350,000 in cash on the third anniversary of the Agreement.
- Spending a minimum of $1,200,000 on exploration on the Project by the first anniversary of the Agreement.
- Spending a minimum of $1,800,000 on exploration on the Project by the second anniversary of the Agreement.
- Spending a minimum of $1,800,000 on exploration on the Project by the third anniversary of the Agreement.
- Spending a minimum of $1,200,000 on exploration on the Project by the fourth anniversary of the Agreement.
Upon Mustang fulfilling all of its obligations under the Agreement, Skyharbour will transfer to Mustang an undivided 80% interest in the Project and Mustang will issue to Skyharbour 500,000 common shares of Mustang.
The Project is located in the Athabasca Basin, Saskatchewan, which is the world's largest and highest-grade uranium district, hosting the majority of the world's uranium production. The Project is comprised of 12 mineral claims covering approximately 23,300 hectares and is considered a prospective uranium exploration project.
Skyharbour's President and CEO, Jordan Trimble, stated: "We are very pleased to announce this option agreement with Mustang Energy, which brings a well-funded and experienced partner to the 914W Uranium Project. Mustang has a strong track record of uranium exploration and development in the Athabasca Basin, and we believe that they are the ideal partner to advance the 914W Project. This transaction also provides Skyharbour with a significant upfront payment and a carried interest in the exploration of the Project, which will allow us to maintain our focus on our flagship Moore Uranium Project."
Mustang Energy's Managing Director, Mr. Russell Clark, stated: "Mustang is excited to enter into this option agreement with Skyharbour and to add the 914W Uranium Project to our Athabasca Basin portfolio. The Project is located in a highly prospective area for uranium exploration, and we believe that it has the potential to host a significant uranium deposit. We look forward to working with Skyharbour to advance the Project and to creating value for our shareholders."
About Skyharbour Resources Ltd.
Skyharbour Resources Ltd. is a Canadian mineral exploration and development company focused on uranium exploration in the Athabasca Basin, Saskatchewan. The Company's flagship project is the Moore Uranium Project, which is located in the eastern Athabasca Basin and is one of the largest undeveloped uranium deposits in the world.
About Mustang Energy Corp.
Mustang Energy Corp. is an Australian publicly traded company focused on the exploration and development of uranium and other energy minerals. The Company's flagship project is the Valhalla Uranium Project, which is located in the Athabasca Basin, Saskatchewan.
