Mr. Nicholas Luksha reports
MUSTANG ENERGY CORP. EXPANDS LAND PORTFOLIO ACROSS THE ATHABASCA BASIN, SASKATCHEWAN
Mustang Energy Corp. has acquired 45,585 hectares of prospective land across the southern and western Athabasca basin in Saskatchewan. This expansion was achieved through a combination of low-cost staking and a strategic purchase agreements, as previously announced in the company's news release dated Sept. 9, 2024, and Sept. 26, 2024.
The newly acquired properties include the Yellowstone project (21,820 hectares), the Dutton project (9,666 hectares) and three additional claims (14,098 hectares) which are currently unnamed. With these acquisitions, Mustang's total landholdings in the Athabasca basin have increased from 10,644 hectares -- comprising the Ford Lake, Cigar Lake East and Roughrider South projects -- to an impressive 56,229 hectares.
"This is another significant land acquisition that marks a major milestone for Mustang Energy Corp. as we continue to strengthen our asset base in the world's premier uranium-producing region," stated Nick Luksha, chief executive officer of Mustang. "We successfully secured these adjoining claims to our existing land package. Since going public in early June, we've expanded our portfolio and intend to further strengthen our team. These claims are located in uranium-rich areas, offering excellent exploration potential, and we believe they will enhance long-term value for our shareholders."
Acquisition of the Yellowstone project
Mustang completed the previously announced acquisition of a land package in the Cluff Lake region of the Athabasca basin from Proton Uranium Ltd. and Electron Uranium Ltd. (the vendors) in exchange for the issuance of 12 million common shares in the capital of Mustang to three nominees of the vendors at a deemed price per share of 25.5 cents. All shares issued as consideration to the nominees are subject to a statutory hold period of four months and one day from the date of issuance. Moreover, the nominees have entered into a voluntary pooling agreement whereby the shares cannot be sold, transferred or otherwise disposed of until Feb. 10, 2026. The claims comprising the Yellowstone project are currently held in trust for Mustang by the vendors, pending confirmation of transfer from Mineral Administration Registry Saskatchewan.
For more information regarding the acquisition of the Yellowstone project, see the company's news release dated Sept. 9, 2024, filed under its profile on SEDAR+.
Acquisition of a 90-per-cent interest in the Brown Lake project
Further to the acquisitions discussed above, Mustang is also pleased to announce that it has completed the acquisition of a 90-per-cent interest in the Brown Lake project pursuant to the terms of a mineral property acquisition agreement with Standard Uranium (Saskatchewan) Ltd. dated Sept. 25, 2024, as previously announced in Mustang's news release dated Sept. 27, 2024. Mustang issued 60,000 shares at a deemed price per share of 33 cents to Standard Uranium Ltd., Standard Uranium SK's parent company, as consideration for the acquisition. All shares issued to Standard Uranium are subject to a statutory hold period of four months and one day from the date of issuance. In addition, the shares are subject to a voluntary escrow arrangement whereby the shares will be released from escrow in four equal parts with the first part released at the expiration of the statutory hold period, and each successive release occurring every two months thereafter.
Pursuant to the agreement, Standard Uranium SK will hold a 10-per-cent carried interest in the project, while Mustang will be solely responsible for financing all expenses and obligations associated with maintaining, exploring and developing the project. Mustang may only surrender its interest in the project with prior approval of Standard Uranium SK. The mineral licence underlying the project is currently held in trust for Mustang by Standard Uranium SK, subject to confirmation of transfer from Mineral Administration Registry Saskatchewan.
For more information regarding the acquisition of the 90-per-cent interest in the project, see the company's news release dated Sept. 26, 2024, filed under its profile on SEDAR+.
Acquisition highlights
Yellowstone project:
100 per cent owned by Mustang, the Yellowstone project consists of seven adjoining claims totalling 21,820 hectares.
The property is located approximately 16 kilometres from the Cluff Lake mine, which has produced over 62 million pounds of uranium and is adjacent to Fission Uranium's West Cluff project.
The project surrounds the Carswell impact structure, an 18-kilometre-wide feature believed to have been created by a meteorite impact, exposing basement rock with significant high-grade uranium potential.
The property is transected by known conductors, suggesting potential exploration targets.
One historic drill hole (SYL-1) encountered strong alteration but missed the intended conductive target.
Dutton project:
The Dutton project spans 9,667 hectares over three adjoining claims in the southern Athabasca basin, Saskatchewan.
The project is situated near the Cable Bay shear zone within the Mudjatik domain, which is known to host uranium anomalies in the basement rock.
The project is located approximately 20 kilometres east of the Virgin River shear zone, which hosts the Dufferin Lake zone and Centennial deposit. These deposits have demonstrated high-grade uranium mineralization, including intersections of 1.73 per cent triuranium octoxide over 6.5 metres and 8.78 per cent U3O8 over 33.9 metres.
The area remains underexplored, offering what Mustang believes to be potential for uranium discoveries.
Taken together, Mustang believes these acquisitions highlight Mustang's commitment to expanding its portfolio of high-quality uranium assets within the Athabasca basin, renowned for its uranium production. As global energy markets transition toward low-carbon solutions, the company believes that nuclear energy -- and the uranium that fuels it -- will continue to play an important role in the sustainable energy landscape.
Mustang remains committed to responsible exploration, ensuring that its operations are conducted in an environmentally and socially sustainable manner, while contributing positively to the communities in which it operates.
Qualifying statement
The scientific and technical information in this release has been reviewed by Lynde Guillaume, PGeo, technical adviser for Mustang, a registered member of the Professional Engineers and Geoscientists of Saskatchewan. Ms. Guillaume is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
About Mustang Energy Corp.
Mustang is a resource exploration company focused on acquiring and developing high-potential uranium and critical mineral assets. The company is actively exploring its properties in the Athabasca basin of Saskatchewan, Canada. Mustang's flagship property, Ford Lake, covers 7,743 hectares in the prolific eastern Athabasca basin while its Cigar Lake East and Roughrider South projects span 2,901 hectares in the Wollaston domain. Mustang has also established its footprint in the Cluff Lake region of the Athabasca basin with the acquisition of the Yellowstone project and further expanded its presence in the southeastern margin of the Athabasca basin through its 90-per-cent interest in the Brown Lake project.
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