Angold Resources Announces Acquisition of Saskatchewan Uranium Projects; Proposed Name Change to Aero Energy Limited
Angold Resources Announces Acquisition of Saskatchewan Uranium Projects; Proposed
Name Change to Aero Energy Limited
Vancouver, British Columbia – December 22nd, 2023 – Angold Resources Ltd. (“Angold” or the
“Company”) (TSXV:AAU) (Frankfurt:13L) is pleased to announce that it has entered into a defi nitive
share purchase agreement dated December 21, 2023, to acquire (the “Acquisition”) 1443904 B.C. Ltd.
(“NumberCo”). NumberCo holds options to acquire up to 70% of the Murmac Property and Strike
Property, and 100% of the Sun Dog Property, (collectively the “Optioned Properties”). The Optioned
Properties are all located in proximity to Angold’s existing uranium exploration properties near
Uranium City , Saskatchewan, creating a leading land position totalling 101,108 hectares in the
prolific Beaverlodge mining district where approximately 70 million pounds of U 3O8 was produced
between 1950 and 19821. Additionally, the Company announces that it intends to change its name to
Aero Energy Limited (the “Name Change”).
Property Descriptions
The Optioned Properties, covering a total area of 39,381 hectares, are located along the northwestern
margin of the Athabasca Basin and encompass the vast majority of target horizons (electromagnetic
or “EM” conductors) in the Uranium City area for high-grade uranium mineralization associated with
the Athabasca Basin unconformity (“ Unconformity-style” mineralization). Historical exploration
efforts were focused on “Beaverlodge-style” mineralization, and the Optioned Properties are largely
unexplored by modern techniques. Within the Optioned Properties there are n umerous historical
high-grade uranium (>1% U 3O8) surface showings , in addition to historical uranium pro duction.
Approximately $7.6M has been invested in the Optioned Properties since 2020 by Fortune Bay Corp.
(“Fortune Bay ”) and Standard Uranium Ltd. (“ Standard”, and together with Fortune Bay , the
“Underlying Owners”). The Optioned Properties contain multiple, permitted, drill ready targets where
reconnaissance drilling completed by the Underlying Owners intersected narrow zones of uranium
mineralization and wide zones of hydrothermal alteration. Shallow, elevated uranium in drill core on
the Optioned Properties is associated with favourable brittle-deformed graphitic rocks and pathfinder
elements typical of high-grade Athabasca Basin deposits. These results confirm that Athabasca Basin
Unconformity-style mineralizing systems have been active on the Optioned Properties.
Sun Dog Property
The Sun Dog Property (“Sun Dog”) optioned from Standard covers an area of 19,604 ha in nine mining
claims and is host to the historic Gunnar uranium mine which produced approximately 18M lbs of
U3O8 between 1953 and 19811. Sun Dog also hosts historical uranium mineralization at surface ranging
between 0.1% and 3.58% U3O8. Standard has invested approximately $4M in exploration at Sun Dog
where 13 holes drilled in 2022 and 2023 resulted in the identification of anomalous radioactivity and
broad zones of strong hydrothermal alteration requiring follow-up.
Strike Property
The Strike Property (“Strike”) optioned from Fortune Bay covers an area of 9,746 ha in four mining
claims. Strike is host to multiple historical surface uranium showings exceeding 1% U3O8 at surface and
grading as high as 27% U3O82. In addition, historical small-scale mining was conducted at the Tena zone
where approximately 1,000 tons was mined in the 1950’s with reported grades of 0.6% to 3.5% U3O83.
Fortune Bay has invested approximately $1.5M in exploration at Strike and in 2021 completed a
ground gravity survey to augment historical VTEM and geochemical surveys previously completed by
Cameco. In 2022 , n ine drill holes were completed by Fortune Bay , three of which intersected
anomalous uranium mineralization up to a maximum of 0.43% U 3O8. Follow-up and exploratory
drilling is strongly warranted at twelve target areas.
Murmac Property
The Murmac Property ( “Murmac”) owned by Fortune Bay covers an area of 10, 131 ha in sixteen
mining claims. Murmac is host to multiple historical surface uranium showings exceeding 1% U3O8 and
grading as high as 10.3% U 3O84. Fortune Bay has invested approximately $2. 1M in exploration at
Murmac. In 2022, Fortune Bay completed ground gravity and VTEM surveys and then completed a
maiden drill program totalling 15 holes. Anomalous uranium was intersected in six of the holes, up to
a maximum individual assay of 0.18% U3O8. Follow-up and exploratory drilling is strongly warranted
at thirty-three target areas.
Local Exploration Facility
During exploration programs the Company will have access to Fortune Bay’s camp and core processing
facility in Uranium City upon commercially reasonable terms.
Option Terms
Sun Dog Property (the “Sun Dog Option”)
The Sun Dog Option is for the right to acquire a 100% interest in Sun Dog from Standard for $650,000
in cash and $650,000 in share payments payable in annual installments payable over a 2-year period,
and a $6,500,000 work commitment over a 3-year period. Following exercise of the Sun Dog Option ,
Standard will retain a 2% net smelter returns royalty, which may be reduced to 1% for a $1,000,000
cash payment.
The following is a summary of the Sun Dog Option, which will transfer to the Company through the
Company’s purchase of NumberCo.
Cash (C$)
Consideration
Shares (C$)
Exploration
Expenditures (C$)
Interest
Earned
Execution Date $200,000 (paid) $200,000 Nil
12-Month Anniversary $200,000 $200,000 $1,500,000
24-Month Anniversary $250,000 $250,000 $2,000,000
36-Month Anniversary Nil Nil $3,000,000
Total $650,000 $650,000 $6,500,000 100%
The number of shares issued for each payment will be based on the Company’s share price upon
completion of the Acquisition.
Strike and Murmac Properties (the “Strike and Murmac Option”)
The Strike and Murmac Option is for the right to acquire up to 70% in the Strike and Murmac
properties from Fortune Bay in three stages for $1,350,000 in cash and $2,150,000 in share payments
payable in annual installments over a 3.5-year period. Additionally, the option includes a $6,000,000
work commitment over a 3-year period. The Murmac property is subject to an existing 2% net smelter
returns royalty.
The following is a summary of the Strike and Murmac Option, which will transfer to the Company
through the Company’s purchase of NumberCo.
Cash (C$)
Consideration
Shares (C$)
Exploration
Expenditures (C$)
Interest
Earned
Execution Date $200,000 (paid) $200,000 Nil
12-Month Anniversary $200,000 $200,000 $1,000,000
24-Month Anniversary $250,000 $250,000 $2,000,000
Total (First Option) $650,000 $650,000 $3,000,000 51%
36-Month Anniversary $300,000 $300,000 $3,000,000
Total (Second Option) $300,000 $300,000 $3,000,000 60%
42-Month Anniversary $400,000 $1,200,000 Nil
Total (Third Option) $400,000 $1,200,000 Nil 70%
Grand Total $1,350,000 $2,150,000 $6,000,000
The number of shares issued for each payment will be based on the Company’s share price upon
completion of the Acquisition.
After earning-in 51%, 60%, or 70% interest (whichever the case may be), the Company and Fortune
Bay will form a joint venture with standard pro-rata funding requirements.
Acquisition Terms
Pursuant to the terms of the Acquisition, the Company will acquire all of the outstanding share capital
of NumberCo in consideration for the issuance of 23,500,000 common shares of the Company (the
“Payment Shares”) to the existing shareholders of NumberCo (collectively, the “ Vendors”) and the
assumption of the obligations related to the Sun Dog Option and the Strike and Murmac Option.
Completion of the Acquisition remains subject to a number of conditions, including receipt of any
required regulatory approvals and the delivery of customary closing documentation. The Acquisition
cannot be completed until these conditions have been satisfied, and there can be no assurance that
the Acquisition will be completed in a timely fashion, or at all.
The Company is at arms -length from NumberCo, the Vendors and the Underlying Owners, and no
finders’ fee is payable in connection with completion of the Acquisition. The Acquisition constitutes a
“fundamental acquisition” for the Company, under the policie s of the TSX Venture Exchange (the
“TSXV”), on the basis that the Company intends to devote the majority of its capital to the Acquisition
and the Optioned Properties. As a result, trading in the Company's common shares has been halted,
at the request of the Company, pending completion of filings with the TSXV in connection with the
Acquisition.
The Payment Shares will be subject to restrictions on resale following issuance. An aggregate of
7,500,000 Payment Shares will be subject to a hold period until March 8, 2024, and the balance of the
Payment Shares will be released in equal tranches every three months over an eighteen-month period
following completion of the Acquisition.
Name Change
The Company also announces that it intends to change its name to “Aero Energy Limited”. The Name
Change is expected to occur concurrently with completion of the Acquisition. In connection with the
Name Change, the Company will update its trading symbol and CUSIP number.
Uchi Project Update
The Company announces that it has relinquished all mineral titles associated with the Uchi project in
Ontario.
Historical Results
Further details regarding the historical uranium occurrences and uranium production noted in this
news release can be found within the Saskatchewan Mineral Deposit Index ("SMDI"). The Underlying
Owners have verified many of these occurrences through field prospecting and sampling, however
there is a risk that any future confirmation work and exploration may produce results that
substantially differ from the unverified historical results. The Company considers these unverified
historical results relevant to assess the mineralization and economic potential of the property. The
Company also cautions that past results, discoveries and production on proximate land are not
necessarily indicative of the results that may be achieved on the subject properties.
Qualified Person
The technical content of this news release has been reviewed and approved by Galen McNamara, P.
Geo., the interim CEO of the Company and a qualified person as defined by National Instrument 43 -
101.
About Angold Resources Ltd.
Angold is an exploration and development company targeting large-scale mineral systems worldwide.
The Company’s assets include projects in gold projects Chile and uranium projects Canada. The Dorado
Project in Chile features a major porphyry -gold system where drill results include 302 m at 0.71 g/t
Au. The Cordillera Project in Chile is strategically located between two multi- million ounce gold
deposits and features multiple gold exploration targets. The uranium projects in Canada are
prospective for high-grade uranium mineralization.
ON BEHALF OF THE BOARD OF DIRECTORS
“Galen McNamara”
Galen McNamara, Chairman and Interim CEO
604-628-2669
Further information on Angold can be found on the Company's website at www.angoldresources.com
and at www.sedarplus.ca, or by contacting the Company by email at [email protected]
References
1.Geology and Genesis of Major World Hardrock Uranium Deposits, United States Geological Survey,
Open-File Report 81-166, 1981.
2. Information obtained from Saskatchewan Mineral Deposit Index, occurrence number 1204.
3. Information obtained from Saskatchewan Mineral Deposit Index, occurrence number 151.
4. Historical geochemical results are sourced from the Saskatchewan Mineral Assessment Database
(SMAD) references 74N07-0310 and 74N07-0311.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements: This news release contains forward- looking statements and forward-
looking information within the meaning of applicable securities laws. These statements relate to future
events or future performance and include expectations regarding the use of proceeds from the
Offering. All statements other than statements of historical fact may be forward -looking statements
or information. Forward-looking statements and information are often, but not always, identified by
the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate",
"expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might",
"should", "believe", "would" and similar expressions. Forward-looking statements and information are
provided for the purpose of providing information about the current expectations and plans of
management of the Company relating to the future. Readers are cautioned that reliance on such
statements and information may not be appropriate for other purposes, such as making investment
decisions. Since forward-looking statements and information address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Actual results could differ mater ially
from those currently anticipated due to a number of factors and risks. Accordingly, readers should not
place undue reliance on the forward- looking statements, timelines and information contained in this
news release. Forward-looking information are based on management of the parties’ reasonable
assumptions, estimates, expectations, analyses and opinions, which are based on such management’s
experience and perception of trends, current conditions and expected developments, and other factors
that management believes are relevant and reasonable in the circumstances, but which may prove to
be incorrect.
The Company undertakes no obligation to update forward- looking information except as required by
applicable law. Such forward-looking information represents management’s best judgment based on
information currently available. No forward- looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-
looking statements or information.