Standard Uranium signs LOI for Rocas project
Executive Summary
- Standard Uranium Ltd. signed a non‑binding Letter of Intent with Collective Metals Inc. granting Collective an option to acquire a 75 % interest in the 4,002‑ha Rocas uranium project in the eastern Athabasca Basin.
- The earn‑in requires cash payments, share issuances and exploration expenditures over three years, totaling $4.5 M in fees and a graduated operator fee (10 % Year 1, 12 % Years 2‑3).
- Upon successful completion, Standard retains a 25 % interest plus a 2.5 % NSR royalty (with an optional 1 % buy‑back for $1 M); the parties will form an unincorporated joint venture to develop the project.
Key Details
- Option Structure:
- Year 1 – Cash fee $50,000; share issuance $250,000; exploration expenditures $1,500,000; operator fee 10 % of expenditures.
- Year 2 – Cash fee $50,000; share issuance $250,000; exploration expenditures $1,500,000; operator fee 12 %.
- Year 3 – Cash fee $125,000; share issuance $225,000; exploration expenditures $1,500,000; operator fee 12 % plus a 75 % earn‑in of the option.
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Total Consideration: $225,000 cash + $725,000 shares + $4,500,000 exploration spend.
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Post‑Earn‑In Ownership:
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Collective Metals to hold 75 % of Rocas; Standard retains 25 % and a 2.5 % net smelter return royalty (1 % purchasable for $1 M).
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Project Highlights:
- 7.5 km of magnetic low/EM conductor corridor with historic surface grab samples up to 0.50 wt % U₃O₈, never drill‑tested.
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High‑resolution ground gravity survey (2024) identified four new high‑priority drill target zones based on gravity anomalies, EM conductors, lake‑bed geochemistry and structural controls.
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Location: 75 km SW of Key Lake mine and mill (Highway 914), ~72 km south of the current Athabasca Basin margin.
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Exploration Plan: Three‑year earn‑in option includes operator rights for Standard during the earn‑in period, with a fee on expenditures as noted above; detailed drill target vectors to be developed from gravity and EM data.
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Legal/Corporate: LOI is non‑binding pending definitive agreements; no finder’s fee payable by Standard.
Notable Quotes
“We are very pleased to have agreed to terms with our new partners at Collective Metals to advance our newly expanded Rocas project… We look forward to completing this transaction and beginning phase one of our three‑year exploration programs run by our Standard Uranium technical team.” – Jon Bey, CEO & Chairman, Standard Uranium Ltd.