Greenridge Exploration has signed a binding agreement to acquire all issued and outstanding common shares of ALX Resources.

This transaction is set to establish a dominant force in the Canadian uranium exploration sector, with a significant presence across key uranium districts including the Athabasca Basin, Thelon Basin and Elliot Lake.

It will result in a combined entity with controlling interests in 16 uranium exploration projects, spanning around 220,000 hectares (ha).

Additionally, the entity will hold interests in 13 other properties across Canada, with potential for lithium, nickel, gold and copper discoveries.

This agreement follows a non-binding letter of intent disclosed last month.

As per the agreed terms, ALX shareholders will receive 0.045 common shares of Greenridge for each ALX share they own. Post-transaction, Greenridge and ALX shareholders will hold nearly 75.2% and 24.8% of the merged entity, respectively.

The combined group will own or have interests in 29 projects covering around 435,000ha.

This includes significant exposure to uranium, lithium, nickel, copper and gold prospects.

Furthermore, the transaction will consolidate Greenridge's ownership in the Carpenter Lake Project. Post-acquisition, Greenridge will hold a 60% interest with an option to increase its stake to 100%.

ALX's portfolio in the Athabasca Basin, comprising 12 additional projects over approximately 173,000ha, will also be integrated into the combined entity's assets.

This deal is due to be finalised in December 2024, contingent on specific conditions such as regulatory approvals.

The companies expect cost savings from the deal, with the combined business anticipated to have a market capitalisation of around C$35m ($25.38m).