ATHA Energy Announces $12 Million Option with Stallion Discoveries Corp. FOR Exploration of Southwestern Athabasca Claims
NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
ATHA ENERGY ANNOUNCES $12 MILLION OPTION WITH STALLION DISCOVERIES CORP. FOR
EXPLORATION OF SOUTHWESTERN ATHABASCA CLAIMS
Vancouver, British Columbia, July 18, 2023 – ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF)
(“ATHA” or the “ Company”) is pleased to announce that it has signed a definitive agreement (the
“Agreement”) with Stallion Discoveries Corp. ( TSXV: STUD ) (“Stallion”), providing Stallion an ability to
earn an option (the “Option”) to acquire a 70% interest in 47 mineral claims in Saskatchewan, Canada (the
“Claims”) by acquiring the requisite portion of the Company’s current 90% interest, after meeting certain
milestones.
The area hosting the Claims is found across the uranium-rich, southwest segment of the Athabasca Basin,
which is home to some of the most promising areas for uranium exploration activity within the region. 1
The Claims span a total of 547,520 acres and are located in an area that is highlighted by several of the
most important uranium discoveries in recent decades.1
Troy Boisjoli, CEO of ATHA commented, “At Atha Ener gy, our objective is discovery and development of
Canada’s next generation of world class uranium projects in the Athabasca Basin. With today’s
announcement, Stallion Discoveries will now have access to over half a million acres of highly prospective
property proximal to the largest high-grade uranium di scoveries made in the last twenty years. As the
largest land holder in the Athabasca Basin, Atha Ener gy will continue to deploy a multilevel approach to
developing projects and creating the most value for its shareholders. It’s an exciting time for the uranium
sector in Saskatchewan, and we are positioning Atha Energy to be Canada’s leading uranium exploration
company.”
Transaction Highlights
Under the terms of the Agreement, Stallion may acquire a 70% interest in the Claims by meeting certain
milestones, including the issuance of common shares in the capital of Stallion to ATHA as well as the
accumulation of $12,000,000 in Saskatchewan Exploratio n Expenditure Credits on the Claims over the
course of five (5) years from the effective date (the “Effective Date”) of the Agreement. These milestones
include:
Within two days of the Effective Date, Stallion shall issue 3,333,333 Stallion shares to ATHA;
Within twelve (12) months after the Ef fective Date, Stallion shall incur $3,311,770 of
Saskatchewan Exploration Expenditure Credits towards the exploration of the Claims; and
Within sixty (60) months after the Effective Date, Stallion shall incur a further $8,688,230 of
Saskatchewan Exploration Expenditure Credits towards the exploration of the Claims.
Upon exercise of the option, a joint venture agreement (the “Joint Venture Agreement”) shall be entered
into by ATHA and Stallion, with Stallion and ATHA (including the carried over interest of the legacy owner)
holding a 70% and a 30% interest, respectively.
The Option is subject to the policies of the Canadian Securities Exchange on the part of ATHA, the approval
of the TSX Venture Exchange on the part of Stallion, and other customary conditions as set out in the
Agreement.
Notes:
[1] International Atomic Energy Agency Redbook (2022)
Qualified Person
The scientific and technical information contained in th is news release as it relates to the Claims have
been reviewed and approved by William Yeomans, P.Geo., a "qualified person" as defined under National
Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About ATHA
ATHA is a mineral exploration company focused on the acquisition, exploration, and development of
mineral resource properties. ATHA holds the largest cumulative exploration package in the Athabasca
Basin, the world’s most prominent basin for uranium discoveries, with 3.4 million acres along with a 10%
carried interest portfolio of claims operated by NexGen Energy Ltd. (TSX: NXE) and IsoEnergy Ltd. (TSX-V:
ISO).
For more information visit www.athaenergy.com
About Stallion
Stallion is an exploration company bred to pursue th e exploration of large, underexplored land packages
located in the best jurisdictions next to world cl ass projects. Stallion is using modern exploration
techniques to explore historical and new mineral targets on its expansive land packages in Saskatchewan,
Idaho, and Nevada with the singular ambition of making significant discoveries. Our leadership and
advisory team are comprised of uranium and precious metals exploration experts with the capital markets
experience and the technical talent for acquiring and exploring early-stage properties with highly
prospective targets.
For more information visit www.stalliondiscoveries.com
For more information, please contact:
Mike Castanho
Director
Email: [email protected]
Phone: 778-839-6579
Forward-Looking Information and Statements
Certain information in this news release constitutes forward-looking information. In some cases, but not
necessarily in all cases, forward-looking informatio n can be identified by the use of forward-looking
terminology such as "plans," "targets," "expects" or "does not expect," "is expected," "an opportunity
exists," "is positioned," "estimates ," "intends," "assumes," "antici pates" or "does not anticipate" or
"believes," or variations of such words and phrases or state that certain actions, events or results "may,"
"could," "would," "might," "will" or "will be taken, " "occur" or "be achieved." In addition, any statements
that refer to expectations, projections or other c haracterizations of future events or circumstances
including, without limitation, statements regarding th e execution of the Agreement and the grant of the
Option thereunder, the ability of ATHA and Stallion to complete their obligations thereunder, the success
and expectations of any exploration activities conducted on the Claims, exchange approval of the Option,
the terms of the Option, the value of any securities of Stallion received by ATHA, the results of the services
received by ATHA under the Services Agreement and the ability of Native Ads to execute its obligations
thereunder all constitute forward-looking information. Statements containing forward-looking
information are not historical facts but instead represent management's expectations, estimates and
projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates
that, while considered reasonable by ATHA as of the date of this news release, are subject to known and
unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of
activity, performance or achievements to be materially different from those expressed or implied by such
forward-looking information, including but not limited to risks regarding the uncertain nature of mineral
exploration; commodity pricing; stock market volatilit y and general market conditions; changes in global
and regional demand for products; the business prospects of ATHA, Stallion and Native Ads, competition;
inflation; trade uncertainties as a result of, among other things, the COVID-19 pandemic, the Russian-
Ukrainian war and changes to global trade restrict ions and tariffs; the av ailability of credit on
commercially reasonable terms; foreign exchange risks; legal and regulatory risks (including changes in
law or regulation); risks related to relationships with stakeholders including any first nations or aboriginal
groups; costs of inputs; weather and other acts of god and their impact on activities proposed to by carried
on by ATHA, Native Ads or Stallion; and the factors described in greater detail in the "Risk Factors" section
of ATHA’s final prospectus dated March 23, 2023 available at www.sedar.com. These factors are not
intended to represent a complete list of the factors that could affect ATHA; however, these factors should
be considered carefully. There can be no assurance that such estimates and assumptions will prove to be
correct. There is no assurance ATHA and Stallion will ente r into the Agreement or that ATHA, Stallion and
Native Ads will be able to comply with their covena nts thereunder and under the LOI and the Services
Agreement, as applicable. The forward-looking statements contained in this news release are made as of
the date of this news release, and ATHA expressly disclaims any obligation to update or alter statements
containing any forward-looking information, or the factors or assumptions underlying them, whether as a
result of new information, future events or otherwise, except as required by law.
Neither the CSE nor its re gulation services provider has reviewed or accepted responsibility for the
adequacy or accuracy of this release.