American Atomics Signs Letter of Intent to Acquire Mining Claims and Related Mineral Rights in Utah

Executive Summary

• American Atomics entered a non‑binding LOI with Big Indian Prospectors to acquire up to an 80 % interest in 217 uranium claim blocks in the Lisbon Valley district, Utah.
• The company may earn the interest by spending $3.6 M each year from 2026 through 2030 and will also make staged cash payments and issuances of common shares and warrants totaling roughly $2.8 M in cash plus $7.5 M in equity‑related consideration.
• American Atomics elected not to exercise its existing option on UR‑Energy’s Colorado claims, releasing UR‑Energy from any further obligations.

Key Details

• Property Overview: 217 claim blocks covering the east flank of the historic Lisbon Valley anticline; historically ~78 M lb U₃O₈ produced at ~0.37 % grade.
• Earn‑In Schedule (USD):
• $3.6 M by 12/31/2026 → 40 % interest
• $3.6 M by 12/31/2027 → additional 10 % (total 50 %)
• $3.6 M by 12/31/2028 → additional 10 % (total 60 %)
• $3.6 M by 12/31/2029 → additional 10 % (total 70 %)
• $3.6 M by 12/31/2030 → additional 10 % (total 80 %)
• Cash & Equity Consideration:
• On LOI signing: $20,000 cash.
• On Definitive Agreement signing: $130,000 cash + issuance of 3 M warrants (5‑year term, vesting over 4 years).
• 90 days after exploration permits: $300,000 in common shares.
• Jan 1 2027: $150,000 cash + $1.3 M common shares.
• Jan 1 2028: $550,000 cash + $1.5 M common shares.
• Jan 1 2029: $650,000 cash + $1.7 M common shares.
• Warrant Terms: Five‑year life; vesting in tranches over four years. Share issuance price to be set based on prevailing market price and CSE policies.
• Operational Rights: Upon Definitive Agreement execution, American Atomics becomes operator with full control of exploration programs, budgets, and contractors.
• Feasibility Study Costs: Company will fund the NI 43‑101 technical report; subsequent project costs to be split pro‑rata after the study.
• Closing Conditions: Execution of Definitive Agreement expected within 60–90 days, subject to due diligence, regulatory approvals, and CSE consent. No guarantee of completion.
• UR‑Energy Option Update: Company will not exercise its option on UR‑Energy’s Colorado claims due to potential impairment from San Miguel County actions; UR‑Energy released from any further obligations.

Notable Quotes

“We are extremely pleased to have executed this option agreement with Big Indian and plan to quickly move towards executing a definitive agreement… We look forward to … a first phase drilling program early in 2026.” – David Mitchell, CEO, American Atomics

“The Big Indian Mining District ... is Utah's premier uranium mining district... Our company has been focusing on discovering another Big Indian Ore Belt…” – Mark A. Steen, CEO, Big Indian Prospectors