Also News Release (C-STUD) Stallion Uranium Corp
Mr. Nicholas Luksha of Glorious Creation reports
GLORIOUS CREATION ANNOUNCES CLOSING OF ACQUISITION OF URANIUM ASSETS IN THE EASTERN ATHABASCA BASIN OF SASKATCHEWAN, FROM STALLION URANIUM CORP. AND RECEIPT OF CONDITIONAL APPROVAL FROM EXCHANGE
Further to its news release dated Feb. 14, 2024, Glorious Creation Ltd. has closed its acquisition of three separate mineral properties comprising an aggregate of seven mineral claims, covering a total of 10,878 hectares (approximately 100 square kilometres), located in eastern Athabasca basin of Saskatchewan, from Stallion Uranium Corp.
Nicholas Luksha, Chief Executive Officer of Glorious, expressed "I am thrilled to announce the successful completion of this transaction. This is an opportune time to enter the uranium industry within Saskatchewan's Eastern Athabasca Basin. I extend my deepest gratitude to our team of directors, CFO, legal counsel, and auditors for their unwavering dedication. We are excited to start our collaboration with our experienced partners, Stallion Uranium and Dahrouge Geological Consulting, on this exciting venture. Together, we are committed to achieving success and enhancing value for our esteemed shareholders."
Drew Zimmerman, Chief Executive Officer of Stallion stated "These three projects are in the heart of the world-renowned Eastern Athabasca Basin and hold potential for a high-grade discovery. We are excited to see the closing of this deal, as these projects will now see a committed uranium exploration program led by the strength of our technical and geological team."
The Properties
The Ford Lake project consists of three claims covering an area of 7,433 hectares in the prolific Eastern Athabasca Basin near the margin of the Mudjatik and Wollaston Domains. Ford Lake's prospectively and potential is highlighted by the recent CanAlaska Uranium Ltd. high-grade discovery hole at Moon Lake only 10km to the northeast. The uranium endowment of the area is proven by nearby significant deposits of the Key Lake Mine only 15km to the southeast and less than 20km from Cameco Corp.'s Millennium deposit and Denison Mines Corp.'s Gryphon and Phoenix deposits with uranium mineral reserves of 106.4 Mlbs (Million Pounds) U3O8.( NI 43-101 Technical Report on the Wheeler River Project Athabasca Basin, Saskatchewan, Canada dated June 20, 2023 )( Denison Mines Corp. - Core Projects - Wheeler River Project
) Each of the Cigar Lake East and Roughrider South projects are located in the Eastern Athabasca Basin in northwest Saskatchewan. The Cigar Lake East and Roughrider South projects consists of four claims covering a total area of 3,445 hectares in the Wollaston Domain in the Eastern Athabasca Basin.
Figure #1. Ford Lake, Cigar Lake East, and Roughrider South shown above with all other Uranium activity in the general region.
Details of the Transaction
Pursuant to the terms of a purchase and sale agreement dated February 12, 2024 (the "Agreement") with Stallion, the Company acquired the Properties from Stallion in exchange for aggregate cash payments of $400,000, the future issuance of an aggregate of 2,500,000 Shares as follows:
Date of Payment Cash Payment No. of Shares Upon execution of the Agreement
$100,000
- Upon Closing
$300,000
- The date that is six (6) months from the date of Closing (the "Closing Date")
-
500,000 The date that is twelve (12) months from the Closing Date
-
500,000 The date that is eighteen (18) months from the Closing Date
-
500,000 The date that is twenty-four (24) months from the Closing Date
-
1,000,000
The Company also granted Stallion a 3.0% net smelter return royalty on the Properties (the "Royalty"). The terms of the Royalty are governed by a net smelter return royalty agreement (the "Royalty Agreement") between the Company and Stallion dated March 8, 2024. The Royalty Agreement includes a 1.5% buy-back right in favour of the Company which can be exercised at any point prior to commercial production as follows: (a) $500,000 for 0.5%; (b) $750,000 for a second 0.5%; and (c) $1,000,000 for a third 0.5%. The Company and Stallion also entered into an operating agreement dated March 8, 2024 (the "Operating Agreemet") pursuant to which Stallion agreed to plan and organize all field programs on the Properties on a workorder basis.
In connection with the Transaction, 350,000 Shares at a deemed price of $0.205 were also issued to an eligible arm's length finder (the "Finder") as a finder's fee in consideration for the Finder's services in facilitating the identification of the Transaction.
Re-qualification for Listing
No change of control of the Company occurred as a result of the Transaction, however the Transaction constituted a "fundamental change" under Canadian Securities Exchange ("CSE") Policy 8 - Fundamental Changes and Changes of Business. On February 29, 2024, Glorius received approval by the holders of at least 50.1% of the issued and outstanding Shares of the Company for the Transaction by way of written consent.
Following the Closing, the business of the Company became mineral exploration and development. Glorious intends to conduct exploration for uranium on the Properties and, in particular, the Ford Lake Property. Glorious has also filed a National Instrument 43-101 - Standards of Disclosure for Mineral Properties compliant technical report with respect to the Ford Lake Property under its profile on SEDAR+.
The CSE provided conditional approval of the re-listing of the Shares on May 28, 2024. In connection with the Closing, Glorious filed articles of amendment to change its name from "Glorious Creation Limited" to "Mustang Energy Corp." (the "Name Change"). The Company anticipates that the Name Change will be effected by the CSE and that trading in the Shares on the CSE will recommence under "Mustang Energy Corp." and a new trading symbol, "MEC". The date that the Shares will resume trading on the CSE will be provided in a future news release, upon receipt of approval from the CSE.
Qualifying Statement
The foregoing scientific and technical disclosures for Glorious Creations Limited have been reviewed by Darren Slugoski, P.Geo., a registered member of the Professional Engineers and Geoscientists of Saskatchewan. Mr. Slugoski is a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
About Glorious Creation Limited
Glorious is incorporated under the provisions of the Business Corporations Act (British Columbia) with its registered and head office in Vancouver, British Columbia. Glorious is a "reporting issuer" in the provinces of Ontario, British Columbia and Alberta.
We seek Safe Harbor.
Comments