Greenridge Exploration has announced a non-binding letter of intent to acquire all issued and outstanding common shares of ALX Resources.
The acquisition is expected to create a leading Canadian uranium exploration company with stakes in 15 uranium exploration projects across key uranium districts.
These projects cover a total area of around 276,000 hectares across Canadian uranium districts including the Athabasca Basin, Thelon Basin and Elliot Lake.
The combined entity will also hold interests in 13 additional properties for nickel, lithium, gold and copper exploration.
This deal is expected to consolidate Greenridge’s position in the mining sector, adding one of the largest uranium property portfolios in the world-class Athabasca Basin.
It will also result in Greenridge owning 60% of the Carpenter Lake Project, with an option to increase its stake to 100%. The pro forma company is expected to have a market capitalisation of around C$35m ($25.94m) and a robust cash position.
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By GlobalData
ALX CEO Warren Stanyer will join Greenridge as president and director.
The merger is also expected to yield significant cost savings by consolidating general and administrative expenses.
Greenridge CEO Russell Starr said: “After the proposed transaction, Greenridge will have a significant portfolio of projects across many strategically important minerals. We look forward to leveraging ALX’s expertise in the Athabasca Basin to explore our significant project portfolio.
“In conjunction with partners like Denison Mines and Uranium Energy Corp., we are confident that the acquisition will only further bolster the discovery potential of our exploration portfolio.”
ALX’s portfolio, including several uranium properties, is considered pivotal for Greenridge’s growth and development in exploration capabilities.
The Vixen Gold Project in Ontario and the Cannon Copper Project, which hosts the historical Cannon Copper Mine and Mill, are among the key assets expected to contribute to Greenridge’s diversified exploration portfolio.
ALX CEO and chairman Warren Stanyer said: “ALX is pleased to unite with Greenridge to create a dynamic uranium and critical metals exploration company focused on locating new mineral deposits.
“The combination of ALX’s technical team with Greenridge’s financial capability provides each company’s shareholders with multiple opportunities for discovery in some of Canada’s best exploration districts.”
