Sulliden Mining Capital Inc. (TSX: SMC) (“Sulliden” or the “Company”) is pleased to announce it has entered into a purchase agreement dated June 27, 2023 (the “Agreement”), pursuant to which the Company has agreed to acquire a 75% interest in the Orange Creek Uranium Project (the “Project”) through the acquisition from a private company (the “Vendor”) of 75% of the issued common shares of Orange Creek Resources Pty. Ltd., another private Australian company (“Privco”). The Project is located in the Northern Territory of Australia, 38 km south of Alice Springs, and is situated adjacent to the Pamela and Angela Uranium Deposits.
Prior to closing, Privco will hold title to an exploration license overlying 723.9km2 of the Amadeus Basin in the Northern Territory. The exploration license is considered prospective to the discovery of sandstone-hosted roll-front style uranium mineralisation. The concession is in close proximity to the Angela and Pamela Deposits (owned by Elevate Uranium Ltd. (“Elevate”)) that reported a historical Inferred Mineral Resource of 30.8 Mlb U3O8 at 1,310 ppm U3O8 (please see Elevate’s press release dated July 8, 2021, which is available at Elevate’s website at elevateuranium.com.au/wp-content/uploads/2021/06/02382572-2.pdf and under their ASX profile at www2.asx.com.au). Please note that production results at or around, and information applicable to, the Angela and Pamela Deposits are not indications of results that could be obtained at, or information applicable to, the Project.
The Project has been explored sporadically since 1977. Several kilometers of redox front boundaries have been defined by very shallow drilling of vacuum holes, reverse air blast holes, percussion holes and diamond drill holes between 1997 and 2009 by previous operators. Multiple historical holes returned geochemically anomalous uranium exceeding 200 ppm U3O8 over core lengths of 0.25-2.0 m within 50 m of surface. However, these holes are very widely spaced and no holes have tested the area below the surface extent of the redox boundary in the sandstone, where possible ‘steps’ in the front could be anticipated. Such steps are key structural traps in which uranium mineralization occurs at the nearby Angela and Pamela Deposits at higher concentrations and over wider intervals.
Pursuant to the Agreement, Sulliden will acquire a 75% equity interest in Privco (the “Acquisition”), with the Vendor retaining the remaining 25% interest. As consideration, Sulliden has agreed to pay AUD$400,000 to the Vendor, AUD$100,000 on the date that the Agreement is executed (the “Execution Date”), and an additional AUD$300,000 on the later of the date of closing the Acquisition (the “Closing”) and 45 days following the Execution Date. As additional consideration, Sulliden has also agreed to fund Privco’s ongoing statutory obligations and exploration activities proposed by the Company during the period from the Execution Date to the Closing and to fund Privco’s additional exploration activities over the two-year period following Closing to the value of AUD$300,000. The Acquisition is an arm’s length transaction for purposes of the policies of the Toronto Stock Exchange and remains subject to customary closing conditions. No finder fees are payable in connection with, and no change of control of Sulliden will result from, the transaction. The transaction is expected to close in July 2023.
