Snow Lake Resources (NASDAQ: LITM) is making significant progress toward finalizing a 50/50 joint venture with Global Uranium and Enrichment (GUE) to acquire the Pine Ridge Uranium Project in Wyoming’s Powder River Basin, StockTitan.net reports.
The acquisition, which also includes Snow Lake’s 19.99% cornerstone investment in GUE’s A$10 million equity placement, is expected to close in April.
The deal is advancing toward two critical dates:
- April 14, 2025 – GUE will hold a general meeting to approve the joint venture and investment.
- April 22, 2025 – The transaction is expected to close, solidifying Snow Lake’s entry into the uranium sector.
As part of the agreement, Snow Lake CEO Frank Wheatley will join GUE’s Board of Directors as a Non-Executive Director, ensuring strategic alignment between the two companies.
The Pine Ridge Uranium Project is an advanced In-Situ Recovery (ISR) uranium development located just 15 kilometers from Cameco’s Smith Ranch Uranium Mill, which has a licensed capacity of 5.5 million pounds of U3O8. The Powder River Basin is considered one of the premier uranium-producing regions in the United States, benefiting from a favorable regulatory environment and streamlined permitting processes.
The ISR mining method is known for lower capital intensity compared to conventional mining, making Pine Ridge a potentially cost-effective uranium production asset.
Beyond Pine Ridge, Snow Lake’s investment in GUE provides additional exposure to:
- Tallahassee Uranium Project (Colorado, USA) – A project with a significant JORC 2012 Mineral Resource.
- Ubaryon’s Uranium Enrichment Technology – An Australian-based next-generation uranium enrichment technology company in which GUE holds a stake.
While the acquisition presents a strategic opportunity for Snow Lake, several factors remain uncertain:
- The total acquisition costs have not been disclosed.
- A definitive timeline for project development and production has yet to be established.
- Future capital requirements for advancing the project remain unclear.
Additionally, while a 50/50 joint venture structure allows for shared risk, it also introduces operational complexities that will require effective collaboration between Snow Lake and GUE.
Snow Lake’s expansion into uranium aligns with growing global interest in nuclear energy as a clean and reliable power source. CEO Frank Wheatley expressed confidence in Pine Ridge’s potential, stating:
“With the Powder River Basin in Wyoming being one of the preeminent uranium-producing regions in the United States, coupled with the advanced stage of development of Pine Ridge, we strongly believe that Pine Ridge holds the potential to create value for Snow Lake shareholders.”
