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Home > News > Greenridge Exploration to...

Greenridge Exploration to acquire ALX Resources Corp

Sep 16, 2024


Greenridge Exploration Inc. and ALX Resources Corp.  are pleased to announce the signing of a non-binding letter of intent ("LOI") dated September 4, 2024 pursuant to which Greenridge will acquire all of the outstanding and issued common shares of ALX (the "Proposed Transaction"). The Proposed Transaction is an arm's length transaction that will create a leading Canadian uranium exploration company with interests in 15 uranium exploration projects that total approximately 276,000 hectares across renowned Canadian uranium districts including the Athabasca Basin, Thelon Basin and Elliot Lake. The combined entity will have interests in an additional 13 lithium, nickel, gold and copper properties across Canada.

Strategic Rationale for the Proposed Transaction

  • Creates leading and diversified Canadian explorer of strategic metals: The combined entity will own or have interests in 28 projects covering approximately 493,000 hectares with considerable exposure to potential uranium, lithium, nickel, copper and gold discoveries. 
  • Adds one of the largest uranium property portfolios in the world class Athabasca Basin: In addition to Carpenter Lake, ALX has interests in 11 other projects and properties covering approximately 231,000 hectares in the Athabasca Basin. Highlighted projects include:
    • Black Lake (40% ALX, 50.43% UEC, 8.57% Orano) - 2004 discovery hole (BL-18) intersected 0.69% U3O8 over 4.4 m. Over 150 holes drilled to date.[1]
    • Gibbons Creek (currently 100% ALX) - high-grade boulders located in 2013 with grades of up to 4.28% U3O8. Four of the five holes drilled in 2024 intersected uranium mineralization at or near unconformity. Uranium mineralization found in two areas located 500 m apart.[2]
    • Hook-Carter (currently 80% Denison, 20% ALX) - 13 km from NexGen's Arrow deposit and 20 km from Fission's Triple R deposit. Hosts a 15 km long exploration corridor prospective for uranium. Under the terms of a 2024 amendment to the joint venture agreement, ALX can earn an additional 5.0% for a total of a 25% interest by spending $3.0 million by November 2026. Denison has spent ~C$7.05M to date, which includes 11,757 m drilled from 2018 to 2019.[3]
    • McKenzie Lake (100% ALX) - A.I. work identified targets following 2021 magnetic and radiometric survey. Boulders were found with grades of up to 0.101% U3O8.[4]
  • Consolidates ownership in the Carpenter Lake Project: Following the Proposed Transaction, Greenridge will own 60% of Carpenter Lake with the option to increase to 100%.
  • Enhanced capital markets profile and shareholder base: the pro forma company is expected to have a market capitalization of approximately C$35 million and a strong cash position. 
  • Enhanced management and Board: adds Warren Stanyer, CEO of ALX, as President and Director as well as another nominee to the Board of Directors of Greenridge.
  • G&A cost savings: anticipate material cost savings from consolidating corporate G&A, corporate development and investor relations and marketing activities compared to operating as two separate entities.

1 Source: Black Lake Property, Fall 2017 Diamond Drilling Program Report - MARS Assessment Work Report #2715.
2 Source: ALX Resources Corp. news releases dated March 25, April 25 and June 13, 2024.
3 Source: ALX Resources Corp. news release dated May 23, 2024;
4 Source: ALX Resources Corp. news release dated November 7, 2023;

Benefits to ALX Shareholders

  • Significant and immediate premium: the Exchange Ratio represents a 130% premium to the 20-day VWAP of the ALX Shares on the TSXV for the period ended September 4, 2024.
  • Exposure to the Nut Lake Project: Nut Lake Project is a 5,853-hectare property in the Thelon Basin located approximately 55 km north of Atha Energy's Angilak Project and the Lac 50 Trend deposit (inferred resource containing 43M lbs U3O8 and 10.4M lbs Mo). The project hosts high grade vein hosted grab samples of up to 4.36% U3O8, 53.16 oz/tonne Ag, 1.15% Pb and 7% Ni. The project has seen approximately 6,920 ft of diamond drilling, with the most noteworthy being at the "tundra showing" where Hole Winkie AX W-24 intersected 9 ft of 0.69% U3O8., including 4.9% U3O8 over 1 ft from 8 ft depth.[5]

Russell Starr, Chief Executive Officer of Greenridge, commented, "We are incredibly excited to announce this first step to acquire ALX Resources. The acquisition highlights our commitment in becoming a key player in today's energy transition. After the Proposed Transaction, Greenridge will have a significant portfolio of projects across many strategically important minerals. We look forward to leveraging ALX's expertise in the Athabasca Basin to explore our significant project portfolio. In conjunction with partners like Denison Mines and Uranium Energy Corp., we are confident that the acquisition will only further bolster the discovery potential of our exploration portfolio. We believe that our portfolio, coupled with our combined technical prowess will allow the Company to quickly develop its most prospective projects."

Warren Stanyer, Chief Executive Officer and Chairman of ALX, commented, "ALX is pleased to unite with Greenridge to create a dynamic uranium and critical metals exploration company focussed on locating new mineral deposits. The combination of ALX's technical team with Greenridge's financial capability provides each company's shareholders with multiple opportunities for discovery in some of Canada's best exploration districts."

5 Source: 1979 Assessment report (number 81075) by Pan Ocean Oil Ltd.

ALX's Uranium Project Portfolio

ALX holds a wealth of uranium properties; namely their Hook-Carter, Black Lake, Sabre, Gibbons Creek, Javelin, McKenzie Lake and Bradley Lake uranium properties, located in the heart of Canada's premier uranium exploration district. These properties will be pivotal for Greenridge as the Company evolves and further develops its exploration capabilities. 

Image removed.

Figure 1 - Athabasca Basin Uranium Projects

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3046/222214_90062a294465183d_001full.jpg

Previous surface work on the properties has delivered promising geological results for the Company to build momentum in future exploration. Particularly, McKenzie Lake's previous 2023 exploration saw three samples which returned 844ppm U-total (0.101% U3O8), 273ppm U-total, and 259ppm U-total2. Furthermore, ALX's Bradley Lake uranium property saw three samples collected in 2022 from the Bradley West showing along a trending structure visible on surface for 60m that returned uranium values ranging from 0.08% to 0.43% U3O8 partial. In addition, two samples from the Bradley East showing, located 170m east of the Bradley West showing, returned values ranging from 0.27% to 1.77% U3O8 partial 1.

ALX owns a 40% interest in the Black Lake uranium property, while Uranium Energy Corp. ("UEC") owns a 51.43% interest and Orano Canada owns an 8.57% interest. The property is also within driving range of Orano Canada/Denison Mines McClean Lake uranium mill. Historical drilling conducted by a predecessor company of UEC identified unconformity-style mineralization extending over a 1.7 km strike length in the northern section of the property, adjacent to the Eastern Fault, which runs parallel to the Black Lake Fault. 

ALX owns 20% of the Hook-Carter Uranium property while the remaining 80% is owned by Denison Mines. Denison Mines has spent $7.05 million in exploration to date. The property consists of 11 claims covering 25,115 hectares. The property is approximately 13km northeast of NextGen's Arrow deposit, 20km northeast of Fission Uranium's Triple R uranium deposit, and approximately 8km northeast of Cameco/Orano/Purepoint's Spitfire, Hornet and Dragon discoveries. Under the terms of a 2024 amendment to the joint venture agreement, ALX can earn an additional 5.0% for a total of a 25% interest by spending $3.0 million by November 2026. 

The Company holds several other highly prospective uranium projects, which are in different stages of advancement. The technical team will evaluate each project on its merits and implement exploration strategies which build the most shareholder value.



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