Trinex Minerals subsidiary Trinex Lithium has signed a binding letter of intent with ALX to potentially acquire a 75% interest in the Gibbons Creek Uranium Project in Canada.

The initial agreement allows for a 51% stake acquisition, with the option to increase ownership later.

This move will be supported by a capital raise of around A$1.25m ($812,818) through an oversubscribed share placement.

The Gibbons Creek Uranium Project spans 139km² in northern Saskatchewan's Athabasca Basin, a region known for its uranium production.

This project presents immediate drilling opportunities, with the first programme set to begin in March 2024 at the Airstrip Prospect.

ALX has outlined plans for a drilling campaign to explore uranium mineralisation, building on previous anomalous findings.

The capital raised from institutional and private investors will fund the exploration efforts at Gibbons Creek.

This project's location in the uranium-rich Athabasca Basin positions Trinex Minerals to potentially tap into significant resources.

Trinex Minerals managing director Will Dix said: “The Athabasca Basin is an outstanding jurisdiction for uranium deposits and Trinex is delighted to gain exposure in this world-class region.

“This earn-in represents a unique opportunity to gain further exposure to energy minerals in Canada, to complement our existing portfolio of prospective lithium projects in the Northwest Territories. With the onground assistance of our major shareholder, Dahrouge Geological Consulting, we are excited to bring local exploration expertise to unlock the value of this new asset.

“The funds realised from the placement will enable the company to conduct exploration activities for the first year on this advanced project. Three target areas have already been identified and an ALX drilling programme will commence in March, after which point Trinex will lead exploration activities.”