Pegasus Resources has finalised a deal with KD Prospect (vendor) to acquire the Jupiter Uranium Project in Emery County, Utah, US.

This move grants Pegasus an undivided 100% interest in the uranium project, which was earlier held by Atlas Minerals.

Under the agreed terms, Pegasus will issue 2.2 million common shares to the vendor within ten business days following approval from the TSX Venture Exchange.

Additionally, a payment of $25,000 (C$34,090) is due within 30 days of signing the agreement.

Further financial commitments include a payment of $75,000, subject to the approval of the TSX Venture Exchange, which is to be made by 1 November 2024 or within ten business days, whichever is earlier, following a private placement by Pegasus.

Upon fulfilling the agreement’s terms, Pegasus will fully earn its interest in the project, which includes resource bonuses and a net smelter return (NSR) royalty to the vendor.

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The vendor is set to receive a resource bonus of $100,000 for every increment of 500,000 pounds of uranium discovered, up to a maximum of 2.5 million pounds (lb).

The first bonus payment is due within 90 days of the initial resource calculation exceeding 475,000lb of uranium.

Additionally, the vendor retains a NSR royalty on the resource.

The Jupiter Project encompasses 48 unpatented claims and is situated near “well-maintained” infrastructure, providing easy access for future operations.

The historical significance of the Jupiter Project is notable, with Atlas Minerals conducting extensive drilling and exploration from 1972 to 1983, indicating its potential as a viable mineral resource.

Pegasus plans to leverage this historical data to guide its upcoming exploration programme.

The company has committed to a drilling programme of 1,500m within 30 days following the first anniversary of the agreement.

Pegasus CEO Chris Timmins said: “The acquisition of the Jupiter Project, along with our Energy Sands Project, presents an exceptional opportunity for Pegasus and our investors.

“Energy Sands holds the potential for a discovery, supported by recent ground programme findings and historical drilling data indicating a mineralised paleochannel.

“Meanwhile, Jupiter provides an advanced property with historical drilling, which will be instrumental in developing a future resource estimate. Together, these projects offer a unique chance for investors to participate in both the development of a new resource and the excitement of a potential discovery.”