Standard Uranium signs Letter of Intent to option Corvo Project, Saskatchewan
Standard Uranium Ltd. [TSXV: STND; OTCQB: STTDF; FSE: 9SU0] has signed a letter of intent (LOI), dated April 4, 2025, with Vital Battery Metals Inc. [CSE: VBAM], the optionee, an arms-length party. Pursuant to the LOI, the optionee will be granted the option to acquire a 75% interest in the 12,265-hectare Corvo Project located in the eastern Athabasca Basin region, Saskatchewan.
Highlights: More than 29 km of exploration strike length along three strong NE-SW magnetic low trends coincident with EM conductors and cross-cutting faults, providing highly prospective shallow drill targets.
Uranium mineralization is present along a strike length of 800 metres between historical drill holes TL-79-3 (0.057% U3O8 over 3.5 m) and TL-79-5 (0.065% U3O8 over 0.1 m) on the Project, in addition to the Manhattan Showing with historical results of 59,800 ppm uranium at surface.
High-resolution geophysical survey — A modern high-resolution time domain electromagnetic (“TDEM”) survey was recently completed, upgrading drill targets through definition of the main conductor trends associated with uranium mineralization.
The option is exercisable by the optionee completing cash payments and share issuances and incurring the following exploration expenditures on the project of consideration payments of $225,000, $725,000 worth of consideration shares, spending $4.5 million on exploration and Operator fees of $507,500 – all over three years.
Jon Bey, Standard Uranium CEO and Chairman, commented: “We are very pleased to have agreed to terms with our new partners at Vital Battery Metals to advance our Corvo Project. The global demand for nuclear energy requires more uranium exploration and high-grade discoveries. There is no better place on the planet to make these discoveries than the Athabasca Basin region. We look forward to completing this transaction and beginning phase one of our three-year exploration programs run by our Standard Uranium technical team.”
The company believes the Corvo Project is highly prospective for the discovery of shallow, high-grade basement-hosted uranium mineralization akin to the Rabbit Lake deposit and the recently discovered Gemini Mineralized Zone and Ackio discovery. Located just outside the current margin of the Athabasca Basin, Corvo boasts shallow drill targets with bedrock under minimal cover of glacial till. Several outcrop showings of mineralized veins and fractures are present on the Project, notably the Manhattan Showing that returned historical sample results up to 59,800 ppm uranium at surface and has never been drill-tested.
Following successful completion of the obligations of the Option (i.e at the end of Year 3), the parties intend on forming a joint venture for the further development of the project. Prior to exercise of the Option, the Company will act as the operator of the Project and will be entitled to charge a 10% fee on expenditures in Year 1, increasing to 11% in Year 2, and 12% in Year 3. Following exercise of the option, Eagle Plains Resources Ltd. [TSXV: EPL] will retain a 2.5% net smelter returns royalty of which 1.0% may be purchased back at any time for a one-time cash payment of $1,000,000.
The LOI is non-binding and the grant of the option remains subject finalization and execution of definitive agreements. No finders’ fee is payable by the company in connection with the Option.
The Company also announced that Sean McGrath has resigned as Chief Financial Officer. The company has commenced a search for a new CFO and in the interim Jon Bey, the Chief Executive Officer, will fill the role.
Standard Uranium is a uranium exploration company and emerging project generator poised for discovery in the world’s richest uranium district. The company holds interest in over 233,455 acres (94,476 hectares) in the world-class Athabasca Basin, Saskatchewan.
Standard Uranium’s Davidson River Project, in the southwest part of the Athabasca Basin, Saskatchewan, comprises 10 mineral claims over 30,737 hectares. Davidson River is highly prospective for basement-hosted uranium deposits due to its location along trend from recent high-grade uranium discoveries. However, owing to the large project size with multiple targets, it remains broadly under-tested by drilling. Recent intersections of wide, structurally deformed and strongly altered shear zones provide significant confidence in the exploration model and future success is expected.
Standard Uranium’s Sun Dog project, in the northwest part of the Athabasca Basin, is comprised of nine mineral claims over 19,603 hectares. The Sun Dog project is highly prospective for basement and unconformity hosted uranium deposits yet remains largely untested by sufficient drilling despite its location proximal to uranium discoveries in the area.