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(Sharecast News) - AIM companies Metals One and Thor Energy announced on Friday that they have signed a term sheet that would see Metals One acquire a 75% interest in Thor's uranium and vanadium projects in Colorado and Utah, consolidating their positions in the highly prospective Uravan Mining Belt.
Metals One said it would pay Thor an exclusivity fee of 0.1m, followed by 1m in new Metals One shares upon the execution of a sale and purchase agreement (SPA), based on a 15-day volume-weighted average price.
The transaction included a 12-month option for Metals One to acquire the remaining 25% of Thor's interest, subject to valuation.
It said the projects, known as Vanadium King, Radium Mountain and Wedding Bell, included 299 mineral claims, with historical high-grade uranium and vanadium production reported at Wedding Bell and Radium Mountain.
Thor had completed drilling campaigns at the Wedding Bell Project, with notable results including 4.9 metres at 0.12% triuranium octoxide and 0.63% vanadium pentoxide.
The claims are located near the White Mesa Mill in Utah, the only fully licensed conventional uranium mill in the United States.
"It's encouraging to see Metals One's strategy gaining momentum, positioning itself as a leading AIM-listed play on early-stage uranium opportunities in the US," said Craig Moulton, chair of Metals One.
"Uranium and vanadium are both central to the global energy transition - uranium fuels zero-carbon nuclear power, while vanadium is increasingly vital for grid-scale battery storage.
"These new projects significantly strengthen Metals One's Western US exploration portfolio - across uranium, vanadium, and gold - at a time when securing domestic supply of critical minerals is rapidly becoming a national priority."
Thor Energy said the divestment of its non-core uranium assets would free up resources to advance its HY-Range natural hydrogen and helium project in South Australia, with proceeds providing "a potentially significant source of future, non-dilutionary funding."
"I am delighted to announce today the term sheet executed with Metals One, which is building a significant US uranium portfolio," commented Andrew Hume, managing director of Thor.
"We welcome Metals One's in-country operational expertise to help drive these projects forward, whilst we remain focused on our project portfolio and notably our HY-Range natural hydrogen and helium project in South Australia."
Metals One also announced the exercise of warrants over 114.2 million shares, raising 1.57m at 2p per share.
Following this issue, the company's total share capital stood at 482.8 million ordinary shares.
Admission of the warrant shares to AIM was expected on 28 July.
At 1311 BST, shares in Metals One were up 5.12% at 8.83p, while those in Thor Energy were ahead 15.79% at 0.55p.
Reporting by Josh White for Sharecast.com.