VANCOUVER, BC, May 21, 2025 /CNW/ - Great Northern Energy Metals Inc. ("GNEM" or the "Company") (CSE: GNEM) is pleased to announce that it has entered into an assignment and assumption agreement (the "Assignment Agreement") to acquire all rights, title, and interests in an option agreement (the "Option Agreement") originally dated February 6, 2025, between UREnergy, LLC, a Colorado-based uranium company ("UREnergy"), and 16508731 Canada Inc., an Ontario-incorporated entity (the "Assignor").
Under the Assignment Agreement dated May 18, 2025, GNEM assumes the rights and obligations to earn a 100% interest in a package of mineral claims and leases (the "Property") located in San Miguel County, Colorado. The Property includes the Slickrock Lease and 60 contiguous unpatented mining claims, known for historical uranium occurrences.
Transaction Summary:
- GNEM has assumed the Assignor's obligations under the Option Agreement to acquire the Property in exchange for:
- An aggregate of USD$1,450,000 in cash payments (collectively, the "Option Cash Payments") to UREnergy, following the below payment schedule:
- $250,000 on Nov 3rd, 2025
- $400,000 on May 18th 2026;
- $400,000 May 18th 2027; and
- $400,000 on May 18th 2028;
- The issuance of fully-paid and non-assessable common shares in the capital of GNEM (the "Option Shares") to UREnergy in four tranches totaling CDN$1,830,000, following the below payment schedule:
- $750,000 worth of Option Shares on Nov 3rd 2025;
- $360,000 worth of Option Shares on May 18th 2026
- $360,000 worth of Option Shares on May 18th 2027; and
- $360,000 worth of Option Shares May 18th 2028.
The deemed price of the Option Shares will be based on the 15-day volume-weighted average trading price of GNEM's shares on the Canadian Securities Exchange (the "CSE") at the time of issuance. All issuances are subject to regulatory approval. UREnergy has provided customary representations and warranties, including good title and compliance with applicable environmental and permitting regulations.
The Assignment is subject to any necessary approvals under applicable Canadian securities laws and the policies of the CSE.
Strategic Importance
The Property hosts prospective uranium targets in a historically productive uranium belt. The acquisition aligns with GNEM's strategy to secure high-potential uranium assets in geopolitically stable jurisdictions.
"This transaction gives GNEM a significant foothold in a tier-one uranium jurisdiction," stated David Mitchell CEO of GNEM. "We believe the Slickrock district has untapped potential, and we are excited to advance exploration and development efforts in collaboration with UREnergy."
About Great Northern Energy Metals Inc.
GNEM is a Canadian-based exploration and development company focused on securing and developing critical energy metals, including uranium. The Company's mission is to support the global transition to clean energy through responsible resource development.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain statements that may be deemed "forward-looking statements", including but not limited to: the payments to be made under the Option Agreement, the development potential of the Property, approval of the CSE, and GNEM's strategic objectives. 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 availability of capital and financing, and general economic, market or business conditions. Investors 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.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
