Homeland Uranium completes Skull Creek acquisition

Executive Summary

• Homeland Uranium Corp. completed the acquisition of the Skull Creek uranium project from Hightest Resources, adding a 100% interest in 154 mining claims and one state exploration permit.
• Consideration consisted of $300,000 cash plus 750,000 common shares; Hightest retained a 2% NSR royalty (1.5% on SEP lands) with an option to reduce it to 1% for an additional $1.5 M payment prior to commercial production.
• Contingent payments are tied to future uranium resource definitions (10–30 million lb U₃O₈), potentially adding up to $500,000 cash and equivalent shares each for larger resources.

Key Details

• Purchase Price: $300,000 cash + 750,000 Homeland common shares.
• Royalty Structure:
• 2% net smelter return (NSR) royalty on all production; reduced to 1.5% on State‑administered SEP lands.
• Royalty may be lowered to 1% if Homeland pays an additional $1.5 M before issuing a notice of intent to commence commercial production.
• Contingent Payments:
• If ≥10 million lb U₃O₈ resource is defined (NI 43‑101), Homeland will pay Hightest $250,000 cash + $250,000 worth of common shares (based on the 10‑day VWAP preceding receipt of the technical report).
• If ≥30 million lb U₃O₈ resource is defined, total contingent payment rises to $500,000 cash + $500,000 in common shares (inclusive of any prior payments).
• For resources between 10 M and 30 M lb U₃O₈, payments will be prorated on a linear basis between the two thresholds.
• Location & Synergies: Skull Creek lies ~20 mi west of Homeland’s flagship Coyote Basin project, offering operational synergies and expansion potential for domestic uranium supply.
• Future Plans: Homeland intends to commence drilling at both Coyote Basin and Skull Creek to upgrade historic deposits to modern standards.

Notable Quotes

“The addition of the Cross Bones uranium deposit on the Skull Creek property is a tremendously exciting acquisition… we anticipate Skull Creek providing significant potential operational synergies with Coyote Basin…” – Roger Lemaitre, President & CEO, Homeland Uranium Corp.