Greenridge Exploration (CSE:GXP) has entered into a binding arrangement agreement to acquire ALX Resources (TSXV:AL,OTC Pink:ALXEF), a move it says will give it stakes in 16 uranium assets in Canada.
The combined entity will also have exposure to critical minerals assets, with interests in 13 further lithium, nickel, copper and gold projects in its portfolio. In total, all 29 projects will cover 435,000 hectares.
Carpenter Lake will be one of the flagship assets in the company’s stable. Greenridge will own 60 percent of the uranium property after the acquisition is complete, with the option to boost its stake to 100 percent.
The purchase of ALX will also bring other key uranium assets to Greenridge, such as the Black Lake, Gibbons Creek, Hook-Carter and McKenzie Lake projects. Together they span approximately 173,000 hectares.
The company’s October 11 press release notes that ALX shareholders will benefit from exposure to Greenridge’s Nut Lake uranium project in Nunavut’s Thelon Basin. Nut Lake has seen about 6,920 feet of diamond drilling activity, and is near Atha Energy’s (TSXV:SASK,OTCQB:SASKF) Angilak project, which hosts the Lac 50 Trend deposit.
The deal between Greenridge and ALX follows a non-binding letter of intent announced on September 5. The acquisition is expected to create a vehicle with a market capitalization of approximately C$35 million.
ALX shareholders will receive 0.045 Greenridge shares for each ALX share held. Upon completion, Greenridge shareholders will hold about 75.2 percent of the merged firm, while ALX shareholders will own around 24.8 percent.
Warren Stanyer, CEO and chairman of ALX, will join Greenridge as president and director, along with an additional nominee to the company’s board of directors. Russell Starr will remain as CEO and director.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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