Angold Resources Completes Acquisition of Interest in Saskatchewan Uranium Projects and Changes Name to Aero Energy Limited
Angold Resources Completes Acquisition of Interest in Saskatchewan Uranium
Projects and Changes Name to Aero Energy Limited
Vancouver, British Columbia – February 8, 2024 – Aero Energy Limited (TSXV: AERO) (OTC Pink: AAUGF)
(FSE: 13L0) (“Aero” or the “Company”) is pleased to announce that it has completed the acquisition (the
“Transaction”) of 1443904 B.C. Ltd. (“NumberCo”) pursuant to the terms of a share purchase agreement
dated December 21, 2023. 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”).
Name Change
Concurrently with completion of the Transaction, the Company has changed its name from “ Angold
Resources Ltd.” to “Aero Energy Limited”. The common shares of the Company are expected to
commence trading on the TSX Venture Exchange under the new name and the new ticker symbol “AERO”
on or about February 13, 2024.
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 numerous historical high -grade uranium
(>1% U3O8) surface showings, in addition to historical uranium production. Approximately $7.6M has been
invested in the Optioned Properties since 2020 by Fortune Bay Corp. (“ Fortune Bay ”) and Standard
Uranium Ltd. (“ Standard”, and toget her 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 Ath abasca 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 U 3O8
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% U 3O8 at surface and grading
as high as 27% U 3O82. 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% U 3O83. 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,
nine drill holes were completed by Fortune Bay, three of which intersected anomalous uranium
mineralization up to a maximum of 0.43% U3O8. 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% U3O84. 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% U 3O8. Follow-up and exploratory drilling is strongly warranted at thirty -three target
areas.
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 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%
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. Additiona lly, 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
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.
Transaction Terms
Pursuant to the terms of the Transaction, the Company has acquired 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”). The Company
has also assumed the obligations of NumberCo related the Optioned Properties, including the
requirements to complete payments and share issuances to Fortune Bay Corp. and Standard Uranium
Ltd., and incur exploration expenditures, in order to maintain an interest in the Optioned Properties.
Upon completion of the Transaction, the Company issued 1,333,333 common shares to each of Fortune
Bay Corp. and Standard Uranium Ltd., at a deemed price of $0. 15, to satisfy certain obligations owing
pursuant to the option agreements under which NumberCo controls the Optioned Properties. For further
information regarding the payments, share issuances and expenditures required to acquire an interest in
the Optioned Properties, readers are encouraged to review the news release issued by the Company on
December 22, 2023.
The Company is at arms-length from NumberCo, the Vendors and the Underlying Owners, and no finders’
fees were payable in connection with completion of the Transaction.
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 Aero Energy Limited
Aero Energy Ltd is an exploration and development company targeting large -scale mineral systems
worldwide. The Company's assets include projects in Chile and uranium projects Canada. The Dorado
Project in Chile features a major porphyry -gold system where drill results include 3 02 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, Interim Chief Executive Officer
Further information on the Company can be found on the Company's website at aeroenergy.ca and at
www.sedarplus.ca, or by contacting the Company by email at [email protected].
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 intended completion of the acquisition of
1443904 B.C. Ltd. 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 r esults could differ materially 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.