Snow Lake Energy to Acquire Buffalo Uranium Project in Wyoming, US

Canadian mineral exploration company Snow Lake Energy has announced a binding letter of intent with Australian company Bazooka Resources to acquire full ownership of the Buffalo Uranium Project located in Wyoming, US, Mining Technology reports.

This acquisition is set to further Snow Lake’s nuclear energy growth strategy, complementing its existing uranium projects in Namibia and Saskatchewan.

Bazooka Resources currently holds an exclusive right to acquire the Buffalo Uranium Project through an option-to-purchase agreement with the project’s three individual claim holders. Once Bazooka exercises its option, Snow Lake will assume full ownership of the company and, consequently, the Buffalo Uranium Project.

The acquisition terms include an initial cash payment of $50,000 to Bazooka to secure the option, followed by a closing payment of $200,000 to the sellers, along with the issuance of Snow Lake shares valued at $400,000. Additional milestone payments are contingent on the publication of technical reports that confirm significant uranium resources, and Snow Lake has the option to make these payments either in cash or shares.

As part of the deal, the sellers will retain a 1.5% net smelter royalty, which Bazooka has the right to buy out for $1.5 million.

This acquisition enhances Snow Lake’s nuclear energy strategy and expands its portfolio in the US, a key market for uranium mining. Wyoming is considered one of the top jurisdictions for uranium mining in the US, and Snow Lake views the state as a strong opportunity for future growth, particularly as global energy demand rises and the US government looks to revitalize its nuclear energy sector.

Snow Lake CEO Frank Wheatley expressed the company’s optimism about the acquisition, stating:

“The proposed acquisition of the Buffalo Uranium Project allows us to establish a uranium project portfolio in the US, and in particular in Wyoming, currently the leading jurisdiction for uranium mining in the US. As global energy demand continues to grow, and with the new US administration looking to launch the long-awaited American nuclear renaissance, we feel establishing a footprint in Wyoming presents a strong opportunity to create value for our shareholders.”

The Buffalo Uranium Project, which consists of 16 unpatented mining claims, has historical significance with previous mining activities that yielded high-grade uranium. Snow Lake plans to use modern exploration techniques to unlock the project’s full potential.

Last month, Snow Lake raised more than $20 million to support its uranium and lithium projects, marking a significant step in advancing its growth and exploration initiatives.