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Stallion Uranium (TSXV: STUD) is divesting its only non-uranium exploration asset, the Horse Heaven gold-antimony project in Idaho, with the signing of a definitive option agreement with an arm’s-length party.
Under the agreement, the optionor can acquire 100% of the project, consisting of 699 mineral claims covering approximately 58.2 sq. km., for total consideration of C$2.6 million, of which C$2 million will be paid in stocks and C$600,000 in cash.
“This definitive agreement allows Stallion to monetize a portion of the value of the Horse Heaven project while maintaining upside exposure through a sizeable equity ownership,” Stallion Uranium CEO Drew Zimmerman said in a news release.
Stallion currently holds a portfolio of uranium properties covering roughly 3,000 sq. km in the Athabasca Basin. A large part is held under a joint venture with ATHA Energy, under which Stallion can earn a 70% interest in 47 mineral claims covering 2,215 sq. km of the Western Athabasca Basin.
Shares in Stallion Uranium closed Friday’s session 11.1% higher at C$0.05 a share on the option agreement signing. The company has a market capitalization of C$7.6 million.
According to the US Geological Survey, American manufacturers use more than 50 million lb. of antimony. The US defence industry, in particular, is heavily reliant on the mineral as it is a key ingredient in making ammunition, night vision goggles and infrared sensors.
Despite its importance, the US has mined no antimony since the closure of the Sunshine mine in Idaho in 2001. Today, it meets 18% of demand through the recycling of lead-acid batteries, but is otherwise import reliant on its main rival China (63%).
“Antimony scarcity, especially in the United States, where they have no domestic production, will be a key driver of value of the project moving forward,” Zimmerman said.
“Stallion is now squarely focused on its vision of making the next big uranium discovery in the Athabasca Basin,” he added.
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