Canadian mineral exploration company Snow Lake Energy has entered a binding letter of intent with private Australian company Bazooka Resources to acquire full ownership of the Buffalo Uranium Project in Wyoming, US.

Bazooka holds an exclusive right to fully acquire the Buffalo Uranium Project through an option-to-purchase agreement with the three current individual claim holders of the project.

Once Bazooka exercises its option, Snow Lake will gain complete ownership of the company and, indirectly, the Buffalo Uranium Project.

The acquisition involves an initial cash payment of $50,000 to Bazooka to secure the option, a closing cash payment of $200,000 to the sellers, and the allotment of Snow Lake shares valued at $400,000.

Additional milestone payments are contingent on the publication of technical reports confirming significant uranium resources, with the option for Snow Lake to make these payments in cash or shares.

The sellers will retain a 1.5% net smelter royalty, which Bazooka has the right to buy out for $1.5m.

This strategic move enhances Snow Lake's nuclear energy growth strategy, complementing its existing uranium projects in Namibia and Saskatchewan, and aligns with the company's memorandum of understanding (MOU) with Exodys Energy.

The MOU focuses on the future development and commercialisation of Snow Lake’s uranium assets.

Snow Lake CEO Frank Wheatley said: “The proposed acquisition of the Buffalo Uranium Project allows us to establish a uranium project portfolio in the US, and in particular in Wyoming, currently the leading jurisdiction for uranium mining in the US.

“As global energy demand continues to grow, and with the new US administration looking to launch the long-awaited American nuclear renaissance, we feel establishing a footprint in Wyoming presents a strong opportunity to create value for our shareholders.

“We believe developing a US domestic uranium supply holds the potential to contribute to the US’ plans to commercialise affordable and abundant nuclear energy.”

The Buffalo Uranium Project is historically significant, with previous mining yielding high-grade uranium. The project consists of 16 unpatented mining claims.

Snow Lake plans to employ modern exploration techniques to realise the full potential of the project.

Last month, the company raised more than $20m in funding, before costs, to support its uranium and lithium projects.