Stallion Discoveries has agreed to acquire a 70% interest in 47 mineral claims in Saskatchewan, Canada, from Atha Energy.

The mineral claims cover an area of 547,524 acres in Saskatchewan’s prolific Western Athabasca Basin.

Under the terms of the definitive agreement, Stallion Discoveries will acquire the stake in the claims by issuing more than three million Stallion shares within two business days, following the satisfaction of customary conditions precedent.

Stallion will also accumulate Saskatchewan exploration expenditure credits of $3.31m (C$4.36m) on the project within one year and additional $8.69m credits within 60 months.

In a press statement, Stallion said: “Should the option be exercised, the company would hold an aggregate of 715,450 acres in the Western Athabasca Basin, part of which would form the largest contiguous land package in the Western Athabasca Basin.”

Upon exercising the option, the two companies will start a joint venture (JV) on the project. The JV will be 70% owned by Stallion while Atha will hold the remaining 30% stake.

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By GlobalData

Stallion Discoveries CEO Drew Zimmerman said: “We are excited to have signed the definitive agreement with Atha and look forward to welcoming them as shareholders of Stallion. This is a transformational deal for Stallion to expand our position in the Western Athabasca Basin and create the largest single exploration land package.

“With exploration efforts well under way and initial geophysical results forthcoming on our 100% owned projects, this transaction will give our exploration efforts even more potential in the burgeoning and under-explored Western Basin.”