American Atomics Signs Letter of Intent to Acquire Mining Claims and Related Mineral Rights in Utah
American Atomics Signs Letter of Intent to Acquire Mining Claims and
Related Mineral Rights in Utah
VANCOUVER, BC, October 27, 2025 /CNW/ - American Atomics Inc. (the
"Company") (CSE: NUKE) (FWB: Q3B) is pleased to announce that on Oct 10, 2025
it entered into a non-binding Letter of Intent (the “LOI”) with Big Indian Prospectors LLC
(the “Vendor”) to acquire certain uranium mining claims and related mineral rights located
in San Juan County, Utah, in the Lisbon Valley area (the “Property”).
The Property lies within the historic Lisbon Valley Mining District of southeastern Utah,
a salt-anticline–hosted camp with ~78 million pounds U₃O₈ of historical production at an
average grade of ~0.37%.* Historic mining occurred predominantly along the west flank
of the Lisbon Valley anticline, while the east flank —down-dropped ~2,000–2,700 feet
along the Lisbon Valley fault—remains comparatively under-explored despite gamma-log
indications of uranium mineralization.
The Property consists of 217 claim blocks which covers the majority of the east side of the
Lisbon Valley anticline, consolidating a contiguous claim block positioned along the
prospective east belt. This footprint is shown on the DBI 1–217 claim map and aligns with
the Company’s thesis that salt anticlines commonly host mineral deposition on both flanks,
not just the historically mined west belt. Conceptual targeting is further supported by cross-
sectional block diagrams and oblique satellite imagery that highlight potential ore belts on
the down-dropped eastern block and gamma-log anomalies in nearby wells.
The district benefits from existing mining infrastructure and access, and the principal
uranium host horizons are within the Chinle Formation (base) and upper Cutler Formation,
consistent with historic producers along the anticline. These geologic and infr astructure
fundamentals, combined with the dominant land position on the east flank, frame American
Atomics’ exploration strategy to systematically test for mirror-image mineralization across
the anticline.
The Company can earn up to a n 80% interest in the Property over a five -year period,
commencing January 1, 2026, by making the following exploration expenditures on the
Property:
• $3.6 million by December 31, 2026 for a 40% interest;
• $3.6 million by December 31, 2027 for an additional 10% interest;
• $3.6 million by December 31, 2028 for an additional 10% interest;
• $3.6 million by December 31, 2029 for an additional 10% interest; and
• $3.6 million by December 31, 2030 for an additional 10% interest.
Beginning in the second contract year (2027), the Company can satisfy any expenditure
commitment shortfalls by the payment of cash and/or common shares. The Company will
have a right of first refusal with respect to any proposed sale, transfer, or other disposition
by the Vendor of any of its interests in the Property.
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In addition to the exploration expenditures, the Company has agreed to make the following
cash payments, and common share and warrant issuances, to the Vendor:
• on signing of the LOI, cash payment of $20,000;
• on signing of the D efinitive Agreement (as defined below) , cash payment of
$130,000, and the issuance of 3 million warrants;
• 90 days after issuance of exploration permits, and issuance of $300,000 of common
shares;
• on January 1, 2027, cash payment of $150,000, and issuance of $1.3 million of
common shares;
• on January 1, 2028, cash payment of $550,000, and issuance of $1.5 million of
common shares; and
• on January 1, 2029, cash payment of $650,000, and issuance of $1.7 million of
common shares.
All common shares deliverable to the Vendor will be issued at prices per shares dependent
on current trading prices and the policies of the CSE and will be subject to the approval of
the CSE. The warrants will have a term of five years and will vest in tranches over a four-
year period The transaction will be governed by a definit ive agreement to be entered into
between the parties (the “Definit ive Agreement”) which the parties expect to execute in
the near term.
Following the execution of the Definitive Agreement, the Company will act as the operator
of the Property and will have day-to-day control and discretion over exploration programs,
contractors and budgets. The Company shall bear the costs of completing a feasibility
study compliant with National I nstrument 43- 101 (the “Technical Report ”), following
which project costs shall be borne by the Vendor and the Company pro rata in proportion
to their respective ownership interests (prior to completion of the Technical Report, the
Company shall bear the project costs).
The Vendor is arm’s length to the Company. Execution of the Definitive Agreement is
expected to occur within 60-90 days of this announcement, subject to completion of due
diligence by both parties. Completion of the transactions will be subject to customary
closing conditions and documentation, and receipt of all necessary regulatory and corporate
approvals, including approval of the CSE. There can be no assurance that the transactions
described herein will be completed as proposed, or at all. All references in this news release
to currency or to “$” are the lawful currency of the United States.
David Mitchell American Atomics CEO commented “ We are extremely pleased to have
executed this option agreement with Big Indian and plan to quickly move towards
executing a definitive agreement in the weeks ahead. This is exactly the type of opportunity
that American Atomics looks for to support its ura nium and eventually, fuel cycle
ambitions. The team at Big Indian own one of the most compelling, unexplored uranium
properties in the US. We look forward to explaining to the market the history and story
around this property and the area in general as wel l as to start planning for a first phase
drilling program early in 2026.”
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Mark A. Steen CEO Big Indian Prospectors stated “The Big Indian Mining District in
Lisbon Valley is Utah’s premier uranium mining district, with historical production of over
$1 billion between 1952 and 1988.* While there were hundreds of uranium mines operating
in Utah during this time period, more than 60 % of Utah’s uranium was produced from 16
large mines and 6 smaller ones from the Big Indian Ore Belt in Lisbon Valley.* At the
October 22, 2025 $76.90 spot price of uranium oxide this would amount to production of
$5.99 billion. Our company Big Indian Prospectors has been focusing on discovering
another Big Indian Ore Belt by combining stratigraphy and structural geology with the
examination of oil and gas drill hole logs. When Rio Algom’s Lisbon Valley m ine was
discovered in the mid- 1960s at a depth of 2,550 feet across the Lisbon Valley Fault *, it
proved that large uranium ore bodies were awaiting deeper exploration drilling in this
mining district.”
Mr. Steen further commented “My partner, Foster Wilson and I are very pleased to be
working with American Atomics in their search for another Big Indian Ore Belt across the
Lisbon Valley Fault. We are looking forward to the exploration drilling that will be
conducted by American Atomics in their quest for uranium ore deposits that could
potentially rival the high -grade, thickness, and size of the mines exploited in this area
during the 1950s Uranium Boom.”
Update on Option to Acquire UR-Energy Claims
The Company announces that, after careful evaluation, it has elected not to exercise its
existing option to acquire UR -Energy’s package of mining claims in Colorado. This
decision follows San Miguel County’s proposed actions that c ould significantly impair
approximately half of the acquired claim blocks. Due to these circumstances, proceeding
would not meet the Company’s strategic objectives or align with the best interests of
shareholders.
UR-Energy has been released from any further obligations under the option arrangement
so it may freely market the projects to other prospective buyers. The Company extends its
appreciation to UR-Energy for its professionalism and cooperation throughout the process.
David Mitchell
CEO & Director
416-574-4818
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About American Atomics Inc.
"From Rock to Reactor"
American Atomics intends to develop a vertically integrated uranium supply chain
across North America — from exploration and extraction to refinement, conversion, and
enrichment. Our project portfolio reflects this full -cycle vision, blending near -term
production assets with long-term infrastructure buildout.
*Utah Geological and Mineral Survey, a division of the Utah Department of Natural Resources,
Report of July 1990.”
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain statements that may be deemed "forward -looking
statements". All statements in this new release, other than statements of historical facts,
that address events or developments that the Company expects to occur, are forward-
looking statements. Forward-looking statements are statements that are not historical facts
and are generally, but not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur. Although the
Company believes the expectations expressed in such forward- looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in the forward -looking statements.
Factors that could cause the actual results to differ materially from those in forward-looking
statements include market prices, continued avai lability of capital and financing, general
economic, market or business conditions , and the execution of the Definitive Agreement
and satisfaction of the transaction’s closing conditions. There can be no assurance that the
transactions described herein will be completed as proposed, or at all. Readers are
cautioned that any such statements are not guarantees of future performance and actual
results or developments may differ materially from those projected in the forward-looking
statements. Forward-looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. Except as required by
applicable securities laws, the Company undertakes no obligation to update these forward-
looking statements in the event that management's beliefs, estimates or opinions, or other
factors, should change.
The technical information in this press release has been reviewed and approved by Joe
Campbell who is a Qualified Person in accordance with the Canadian regulatory
requirements set out in NI 43- 101. Readers are cautioned that some of the technical
information described in this press release is historical in nature; however, the historical
information is deemed credible and was produced by professional geologists/geoscientists
in the years discussed. In addition and in relation to the adjacent properties, t he QP has
been unable to personally verify the information, and therefore the information is not
necessarily indicative to the mineralization on the property that is the subject of the
disclosure."
The Canadian Securities Exchange has neither approved nor disapproved the contents of
this news release.
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