Metals One (MET1) has executed a binding sale and purchase agreement (SPA) for the acquisition of 75% of two US companies with mineral claims in Colorado and Utah from Thor Energy PLC.
The claims are Vanadium Kings, Radium Mountain and Wedding Bell, which host uranium and vanadium mineralisation.
These are in a tier one location, situated in the highly prospective Uravan Mining Belt on the border of Utah and Colorado.
The claims are proximal to Metals One's Uravan uranium-vanadium project, and to the White Mesa mill, the only fully licensed and conventional uranium processing plant in the US.
The Wedding Bell and Radium Mountain Projects comprise 199 mineral claims over areas of historical high-grade uranium and vanadium production. Thor completed two drill campaigns in 2024 at the Wedding Bell project.
Drilling in February 2024 returned strong results, including one hole which returned 4.9 metres at 1,199 parts per million (0.12%) U3O8 and 6,306 ppm (0.63%) V2O5 from 82 metres.
Drilling in November 2024 was limited due to adverse weather conditions and less than half the planned programme was completed. Results of several step out holes were of excellent grade but narrow in extent at less than one metre, demonstrating localised pinching and swelling of the mineralised horizons.
Metals One intends to re-examine the historical and new drill data and potentially complete the remainder of the November 2024 drill programme that wasn't completed.
The Vanadium King project includes 100 claims in southeast Utah, approximately 40km north of the town of Moab. There is no evidence of historical mining activities there. However, there is reporting of significant uranium and vanadium mineralised bodies from drilling activities by Hunt Oil, Mineral Division, in 1980 and 1981, as reported by Terra Ventures in 2007.
Although the Hunt Oil estimate does not comply with either the JORC or NI 43-101 for current mineral resource reporting, it does provide a strong indication of widespread uranium and vanadium mineralisation on the project, in a geological setting analogous to multiple deposits elsewhere in the region.
As previously announced, the £1 million consideration for the acquisition of the interests in the two US companies, being Standard Minerals and Cisco Minerals, is payable to Thor in Metals One shares at the volume weighted average price of Metals One's ordinary shares in the 15 days prior to the parties entering into the SPA.
Accordingly, Metals One has issued the Vendor 14.2 million new ordinary shares at 7.03p. Metals One also has an exclusive 12-month option to acquire the remaining 25% of the two companies.
“These new claims expand the company's footprint in the Uravan Mineral Belt, a geological area in southwestern Colorado and eastern Utah well known for significant uranium and vanadium deposits,” said Craig Moulton, chair of Metals One.
“We look forward to developing our exploration programmes for the Vanadium Kings, Radium Mountain and Wedding Bell projects as we position Metals One, among other commodities, as a leading Aim-listed play on early-stage uranium opportunities in the US."
View from Vox
This deal was previously announced, but it’s good to see Metals One following through and delivering an increased footprint on its US uranium and vanadium assets. Uranium remains a commodity of the moment, and Metals One’s exploration plans for its various US properties should ensure that it remains in the spotlight as summer turns to autumn.