IsoEnergy Sells Mountain Lake Property to Future Fuels, Consolidating Hornby Basin Uranium Potential
TORONTO, Nov. 14, 2024 /PRNewswire/ — IsoEnergy Ltd. (ISO ISENF) is pleased to announce the sale of its Mountain Lake property in Nunavut to Future Fuels Inc. (FTUR). This strategic transaction marks a significant step forward in the exploration and development of the Hornby Basin, one of Canada’s key uranium districts.
The agreement sees IsoEnergy divesting its rights to the Mountain Lake property in exchange for a substantial equity stake in Future Fuels, NSR royalties, and participation rights in future financings. This move solidifies Future Fuels’ position as a major player in the Hornby Basin, consolidating over 40 uranium showings and a vast land package spanning ~342,000 hectares.
Key Benefits of the Transaction:
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District-Scale Opportunity:
By combining Mountain Lake’s historical resources with Future Fuels’ existing Hornby Project, the transaction creates a vast exploration area with significant potential for new uranium discoveries. This consolidation enhances the overall exploration and development potential of the Hornby Basin.*
Strategic Unification:
The unification of these assets under Future Fuels’ leadership leverages expertise and resources, optimizing exploration and development efforts. This strategic alignment positions the Hornby Basin as a key uranium exploration hub in Canada.*
Accretive Transaction for IsoEnergy:
Despite selling Mountain Lake, IsoEnergy retains significant exposure to the property’s future through a substantial equity position in Future Fuels. The company will also benefit from participation rights in future financings, ensuring ongoing involvement in the project’s advancement. Additionally, IsoEnergy secures net smelter return (NSR) royalties, providing long-term financial benefits.*
Unlocking Value and Strategic Focus:
The transaction aligns with IsoEnergy’s strategic business plan to maximize shareholder value by capitalizing on accretive opportunities and efficiently leveraging non-core assets. This sale allows IsoEnergy to dedicate resources and capital to its core jurisdictions and near-term production, development, and exploration activities.*
Enhanced Equity Portfolio:
IsoEnergy’s equity portfolio, which includes positions in NexGen Energy Ltd., Premier American Uranium Inc., Atha Energy Corp., and Jaguar Uranium Corp., is further strengthened by the addition of approximately C$4.0 million in value through this transaction.Transaction Details
The agreement outlines the following key components:
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Issuance of Shares:
Future Fuels will issue 12,500,000 common shares to IsoEnergy upon closing (Upfront Shares) and an additional 2,500,000 common shares (Deferred Shares) after closing, subject to certain restrictions and a statutory hold period.*
NSR Royalties:
IsoEnergy will receive a 2% NSR royalty on all production from Mountain Lake, with 1% eligible for repurchase by Future Fuels for $1,000,000. Additionally, IsoEnergy will receive a 1% NSR royalty on all uranium production from Future Fuels properties in Nunavut, excluding Mountain Lake.*
Investor Rights Agreement:
IsoEnergy will enter into an agreement providing it with the right to nominate a director to the Future Fuels board and participate in future equity financings to maintain its pro rata ownership.Future Fuels Concurrent Financing
As a condition of the transaction, Future Fuels will undertake a non-brokered private placement (Concurrent Financing) of 8,000,000 units at a price of $0.25 per Unit. Each Unit consists of one common share and one-half of one warrant, with each whole warrant entitling the holder to purchase one additional common share at $0.40 per share for 24 months from the closing of the Concurrent Financing.
Qualified Person Statement
Dr. Dan Brisbin, P.Geo., IsoEnergy’s Vice President, Exploration, a Qualified Person under NI 43-101, reviewed and approved the scientific and technical information contained in this news release.
About IsoEnergy Ltd.
IsoEnergy Ltd. is a leading, globally diversified uranium company with significant current and historical mineral resources in key uranium mining jurisdictions, including Canada, the U.S., and Australia. The company is actively advancing its Larocque East Project in Canada’s Athabasca Basin, home to the Hurricane deposit, boasting the world’s highest grade Indicated uranium Mineral Resource. IsoEnergy also holds a portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah with a toll milling arrangement in place with Energy Fuels Inc., positioning the company as a near-term uranium producer.
About Future Fuels Inc.
Future Fuels’ primary asset is the Hornby Uranium Project, covering the Hornby Basin in northwestern Nunavut. This project encompasses over 40 underexplored uranium showings, including the historic Mountain Lake Deposit. Future Fuels also owns the Covette Property in Quebec’s James Bay region, comprising 65 mineral claims over 3,370 hectares.
Forward-Looking Information
This news release contains forward-looking statements regarding the transaction, its potential benefits, regulatory approvals, and the company’s business plan. These statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could affect actual results include, but are not limited to, the ability to complete the transaction, obtain regulatory approvals, realize anticipated benefits, uranium prices, and general economic conditions. Investors are cautioned not to place undue reliance on forward-looking statements.
