NewPeak Metals has signed a binding term sheet with Yacimiento (vendor) to acquire the Treuer Range uranium-vanadium project (EL 33611) in Australia's Northern Territory.

The company, which has completed its due diligence, is moving to seal a formal sale agreement.

Under the deal, NewPeak will pay A$350,000 ($234,260) to the vendor via the issue of 23.33 million shares at A$0.015 per share.

NewPeak will also grant a 2% net smelter royalty for the project to the vendor.

Covering an area of 230.7km² in the Ngalia Basin, the Treuer Range Project is prospective for sandstone-type uranium-vanadium mineralisation associated with the carboniferous mount eclipse sandstone.

NewPeak's acquisition marks a significant move in its strategic plans to enter the critical minerals space.

The company plans to conduct exploration at the Treuer Range Project to define JORC mineral resources, including a detailed review of historic exploration data and new geochemical sampling.

The exploration programme will also involve the acquisition of high-definition satellite imagery and ground geophysical surveys.

Priority areas identified will undergo further investigation with soil sampling, trenching and drilling.

The company plans to use reverse circulation drilling to test mineral potential and improve geological understanding of the area.