Global Uranium has agreed to sell an 80% stake in the Lake Johnston Project to Intra Energy Corporation (IEC) in Western Australia.

As per the agreed terms, Global Uranium will retain a 20% interest and a 1% gross revenue royalty in the project.

The deal, valued at up to A$2.12m ($1.4m), includes A$175,000 in cash and 30 million IEC shares at completion, with further consideration contingent on project milestones.

Global Uranium plans to use the initial cash payment of $175,000 from the sale towards the exploration and development of its uranium assets in North America.

Completion of the sale is subject to several conditions including due diligence on the tenement and mining information by IEC.

Additionally, necessary deeds of assignment and assumption must be executed, and all third-party approvals, consents and waivers must be obtained to fulfil the sale agreement’s requirements.

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IEC will issue or pay the remaining deferred consideration in shares or cash, depending on the achievement of specific milestones related to the Lake Johnston Project.

This structured payment arrangement aligns with the project’s progress and future performance.

Global Uranium managing director Andrew Ferrier said: “This is an excellent transaction for Global Uranium and our shareholders, as we can continue to focus on developing our advanced, high-quality, North American uranium portfolio while maintaining upside exposure to the Lake Johnston Project.

“Lake Johnston is an exciting asset, located in a proven lithium region, which has been highlighted by recent discoveries made by TG Metals and Charger Metals. The transaction with IEC will now allow the project to be taken to the next level and Global Uranium and its shareholders to benefit from any future exploration success.

“The critical need and role of nuclear energy as a leading clean energy source is growing every day and as an advanced uranium developer, we are focused on building our portfolio in size and scale and establishing the company as a key North American uranium producer.”