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WINNIPEG - Snow Lake Resources Ltd., also known as Snow Lake Energy (NASDAQ: LITM), has entered into a joint venture with Global Uranium and Enrichment Limited (ASX: GUE), to acquire the Pine Ridge Uranium Project in Wyoming’s Powder River Basin. The partnership, announced Today, will see both companies holding a 50% stake in the project, which is positioned in a leading uranium-producing region in the United States. According to InvestingPro data, Snow Lake’s stock, currently trading at $0.38, has seen significant volatility, with the price down about 21% in the past week alone.
The joint venture also marks Snow Lake’s strategic move to become a cornerstone investor in GUE, as it acquires a 19.99% interest in the Australian company through a AUD$9 million capital raise. This investment grants Snow Lake indirect exposure to GUE’s portfolio of uranium assets and next-generation uranium enrichment technology.
Pine Ridge is an advanced In-Situ Recovery (ISR) uranium project that is ready for rapid development. It is surrounded by major uranium projects, including Cameco’s Smith Ranch Uranium Mill, which is only 15km away. Drilling at Pine Ridge is expected to start immediately as part of an accelerated work program.
This acquisition is a significant step for Snow Lake, as it provides the company with a robust foothold in the United States uranium market. The Powder River Basin is supported by a favorable regulatory environment and streamlined permitting processes, making it an attractive location for uranium production.
The joint venture management team boasts extensive experience in uranium exploration, development, and permitting in the Powder River Basin. Snow Lake CEO Frank Wheatley, who will join GUE’s Board of Directors, expressed enthusiasm for the partnership and the potential value creation for Snow Lake shareholders.
Snow Lake, a Canadian mineral exploration company, is fully funded for its contributions to the joint venture following recent capital raisings totaling approximately USD$37 million. The company has a diverse portfolio of clean energy mineral projects, including uranium and hard rock lithium projects. InvestingPro analysis indicates the company’s financial health score is rated as "FAIR," though it’s worth noting the company is burning through cash rapidly with negative free cash flow of $6.01 million in the last twelve months. Subscribers to InvestingPro can access 11 additional investment tips and detailed financial metrics for Snow Lake Resources.
The terms of the Pine Ridge acquisition and the joint venture are outlined in Schedule A, with the closing of the acquisition expected to occur on or before April 22, 2025. The agreement includes a production royalty to be paid to the original seller based on uranium, vanadium, and related mineral production.
This press release contains forward-looking statements subject to risks and uncertainties. Snow Lake Resources Ltd. does not undertake any duty to update such information except as required by law. The information in this article is based on a press release statement. With a current market capitalization of $35.14 million and trading below its InvestingPro Fair Value, investors seeking detailed analysis and valuation metrics can find comprehensive coverage on InvestingPro.
In other recent news, Snow Lake Energy has successfully completed a public offering, raising approximately $6.45 million. This capital will be used to fully fund the company’s exploration programs for 2025, specifically targeting the Engo Valley and Black Lake uranium projects. The company has also announced plans to advance its global exploration program in 2025, following successful fundraising efforts exceeding $20 million. Initial assay results from the Phase 1 drill program at Engo Valley are expected in early January 2025, with further exploration activities slated to begin shortly thereafter. Snow Lake Energy is also preparing to resume exploration at its Black Lake Uranium Project, with preparations for the 2025 field season already underway. The company has expressed confidence in the necessity of new uranium sources to meet the rising global demand for nuclear energy. Additionally, Snow Lake acknowledged the sale of its common shares by Nova Minerals Limited, the company’s founder and majority shareholder. This series of developments underscores Snow Lake Energy’s strategic focus on uranium exploration amidst growing global energy needs.
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