Kirkstone signs LOI to acquire Key Lake Road project

Executive Summary

• Kirkstone Metals entered a non‑binding LOI to acquire 100 % of the Key Lake Road (KLR) uranium project in Saskatchewan’s Athabasca Basin.
• The proposed transaction involves staged cash payments, exploration expenditures over three years, and a 3 % net smelter return royalty with an optional buyout provision.
• Due diligence will be conducted; a definitive agreement is expected pending technical, legal, and regulatory review.

Key Details

• Target Asset: 100 % interest in the KLR uranium project (≈5,521 ha) located ~90 km south of Cameco’s historic Key Lake mine.
• Transaction Structure:
• Cash payments and exploration spend commitments over a three‑year period.
• Grant of a 3 % net smelter return royalty to the vendor, subject to a buyout option by Kirkstone.
• Due Diligence: Full technical and legal review to be completed before execution of a definitive agreement; no securities will be issued in connection with the transaction.
• Historical Exploration Highlights:
• DD zone (2023): Six shallow holes, best intercept 642 ppm U and 0.34 % Ni.
• Highway zone (2015): Near‑surface interval of 1.9 % U₃O₈ over 0.29 m.
• Exploration Model: Inspired by NexGen’s Arrow deposit, suggesting a higher‑grade feeder anomaly at depth beneath identified radioactive halos.
• Regulatory/Exchange Considerations: Acquisition not expected to be a “fundamental acquisition” under TSX Venture Exchange policies.
• Investor Relations Engagement: Lagace Capital Corp. engaged for IR services (3‑month term starting Oct 1 2025, $2,000 cash monthly fee; no securities compensation).
• Qualified Person Review: Technical information reviewed and approved by Tim Henneberry, P.Geo., director and NI 43‑101 qualified person.

Notable Quotes

“The signing of this LOI represents a continued commitment to expand our uranium exploration portfolio in the Athabasca basin… Historical results provide a strong foundation, and we believe there is significant potential to build upon these to define a higher‑grade discovery.” – Clive Massey, President, Kirkstone Metals Corp.