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Alligator Energy to acquire Big Lake uranium project in South Australia

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Alligator Energy to acquire Big Lake uranium project in South Australia

Alligator Energy Ltd. signed a nonbinding heads of agreement to acquire the Big Lake uranium project in South Australia from privately owned Big Lake Uranium Pty. Ltd., with the companies aiming to enter a farm-in agreement before Nov. 25.

The company will immediately start exploration and geophysics, with an initial 2,500-meter drill program scheduled for the second quarter of 2020, it said Oct. 16.

Alligator Energy will pay Big Lake Uranium A$10,000 and spend at least A$220,000 on the property before July 21, 2021, to secure the right to acquire the project. It will also issue 3 million shares to Taycol Nominees Pty. Ltd. as a facilitation fee.

The company can then acquire Big Lake Uranium by issuing 30 million common shares and will issue a further 30 million shares if it defines inferred resources of 25 million pounds of uranium grading at least 1,000 parts per million uranium within eight years.