Canada’s Snow Lake Energy and Australia’s Global Uranium and Enrichment (GUE) have announced the formation of a joint venture (JV) to acquire the Pine Ridge Uranium Project in Wyoming, US, from Stakeholder Energy.
The JV, named Powder River Basin, will be owned equally by Usuran Resources, a wholly owned subsidiary of GUE, and Snow Lake Exploration (US), a wholly owned subsidiary of Snow Lake Resources.
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Under the terms of the agreement, Powder River Basin will pay a total of $22.5m in cash to Stakeholder Energy in three equal instalments.
The first payment of $7.5m is due at the closing of the deal, with the second and third payments scheduled for one and two years after closing, respectively.
The transaction is expected to be completed by 22 April 2025, subject to standard closing conditions and regulatory approvals.
Snow Lake CEO Frank Wheatley said: “The Powder River Basin in Wyoming is one of the preeminent uranium-producing regions in the US and this acquisition provides Snow Lake with a robust and strategic foothold in the US.
“With global focus turning to nuclear energy to address energy security concerns, coupled with the US administration’s policies favouring domestic energy security and advanced nuclear technology, we see this acquisition and investment as a transformative opportunity to expand our uranium footprint and create value for our shareholders.”
The transaction also includes a production royalty to be paid to Stakeholder Energy, based on a net smelter returns variable ranging from 3.5% to 6%, depending on the triuranium octoxide (U3O8) realised price.
This royalty is applicable to uranium, vanadium and related minerals produced and sold by the buyer.
The agreement also includes a commitment to a minimum of $10m in exploration and development costs within three years of the deal’s closure.
Drilling work at the Pine Ridge project, an advanced in-situ recovery uranium project, is due to commence immediately following the acquisition.
GUE managing director Andrew Ferrier said: “We are pleased to welcome Snow Lake Energy as a strategic partner, who have recognised the strength of Global Uranium’s existing portfolio and our value as a partner in the Pine Ridge Project.
“Executing this transaction in partnership with Snow Lake makes strategic sense for Global Uranium and marks a significant milestone as we rapidly advance towards our target of securing over 100mlbs [million pounds] of uranium across our portfolio. This project has the potential to be a game-changer for Global Uranium.”
Snow Lake will also acquire a 19.99% stake in GUE as part the latter’s proposed A$9m ($5.6m) capital raise.
This investment grants Snow Lake indirect exposure to GUE’s premier uranium assets and next-generation uranium enrichment technology.
In January 2025, Snow Lake Energy secured more than $20m in funding, before costs to support the development of its uranium and lithium projects.
