Troubadour Resources farms out Monarch Uranium Project to Pluto Ventures, Nunavut
Troubadour Resources Inc. [TSXV: TR; OTCQB: TROUF], a North American mineral acquisition and exploration company, reported that it has entered into an option agreement for Pluto Ventures Inc. [CSE: PLTO] to acquire a 100% interest in the company’s Monarch Uranium Project, located in Nunavut, Canada.
The transaction is not subject to Exchange approval, as it qualifies as an Exempt Transaction under Exchange Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets.
The agreement aligns with Troubadour’s strategy to streamline its portfolio and focus on its core assets, including its gold and polymetallic projects in British Columbia and Quebec. By optioning the Project to Pluto, Troubadour secures immediate and staged financial benefits while transferring exploration risk to a capable partner with expertise in uranium exploration.
“We are thrilled to announce this option agreement with Pluto Ventures, which allows Troubadour to unlock value from the Monarch Uranium Project while sharpening our focus on our core gold and polymetallic assets,” said Zachary Kotowych, CEO of Troubadour Resources.
Kotowych continued: “Pluto’s expertise and commitment to advancing this high-potential uranium project positions Troubadour to benefit from Monarch’s upside as global uranium demand surges. This transaction is a win-win, strengthening our balance sheet and aligning with our disciplined growth strategy.”
To exercise the option, Pluto must fulfill the following conditions. Pluto will issue an aggregate of 650,000 common shares to Troubadour, as follows: 250,000 shares on the effective date of the agreement; 250,000 shares on or before the first anniversary of the agreement; and 150,000 shares on or before the second anniversary of the agreement.
Pluto will pay Troubadour $50,000 in total cash consideration, on or before the second anniversary of the agreement. Pluto will incur a minimum of $150,000 in exploration expenditures to be completed by the second anniversary of the agreement.
Pluto will serve as the operator of the project while it is under option and has the flexibility to accelerate share issuances, cash payments, and/or exploration expenditures to earn its interest ahead of schedule.
Troubadour Resources is focused on the development of quality critical mineral and precious metal properties that are drill-ready with high-upside and expansion potential.
Troubadour’s flagship project is the Senneville Gold-Copper Project. Comprised of 230 mineral claims totalling over 130 km2, the Senneville Project is located within the prolific Val d’Or Mining Camp, Quebec, between Probe Gold’s McKenzie Break deposit (1,453,400 ounces Inferred) to the north and the Probe’s Novador Development Project to the south (6,049,100 ounces M&I and 1,400,900 ounces Inferred).