Australia’s Trinex Minerals, through its Canadian unit Trinex Lithium (Trinex Canada), has entered a definitive agreement with ALX Resources to acquire up to a 75% stake in the Gibbons Creek Uranium Project in Saskatchewan, Canada.

The move is facilitated by an option and earn-in arrangement, referred to as the Gibbons Creek Earn-In.

The Gibbons Creek Uranium Project spans 139km² on the northern edge of the Athabasca Basin and consists of eight mineral dispositions.

To secure this deal, Trinex Minerals has made definitive agreement execution payments to ALX, including C$50,000 ($36,344) in cash and the issuance of 68,743,011 fully paid ordinary shares, valued at C$250,000.

The funds from this placement will support Trinex Canada’s exploration expenses for the Gibbons Creek Earn-In and provide general working capital.

Trinex Canada can initially earn a 51% interest in the project by fulfilling cash, share payments and minimum expenditure requirements.

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ALX’s recent drilling programme, which cost around C$500,000, has already been reimbursed by Trinex Canada.

Upon meeting the initial option’s obligations, Trinex Canada can claim a 51% interest transfer from ALX without further consideration.

Additionally, the two parties have agreed to establish an unincorporated joint venture for the project.

Trinex Canada can then pursue a further 24% interest, potentially bringing its total stake to 75%, by continuing to make payments and meet expenditure targets.

During this period, Trinex Canada will have full control over the project’s exploration activities.

Trinex Canada retains the right to withdraw from the agreement at any stage. If withdrawal occurs after securing a 51% or 75% interest, the company will maintain its stake.

However, if the withdrawal happens before reaching the 51% threshold, no interest in the project will be acquired. Trinex Canada also holds the discretion to terminate its interest at any point for any reason.