CSE-listed Vital Battery Metals has signed a non-binding letter of intent (LoI) with Standard Uranium to acquire a 75% interest in the Corvo project, a 12 265-ha uranium property located in the eastern Athabasca Basin region of Saskatchewan.

The LoI, dated April 4, outlines terms for Vital to earn its stake through a combination of cash payments, share issuances, and exploration spending over a three-year period. The Corvo project is described as being highly prospective for shallow, high-grade basement-hosted uranium mineralisation, similar to that of the nearby Rabbit Lake deposit and the Gemini mineralised zone.

"We are very excited to expand into the Athabasca basin with the proposed acquisition of the Corvo project," said interim CEO Mandeep Parmar. "The Athabasca basin is renowned for world-class uranium deposits, aligning with the company’s goal of acquiring high-potential projects in key jurisdictions. With the proposed addition of Corvo, we look forward to driving advancement of the project alongside the Sting copper project, while continuing to build value for our shareholders."

The Corvo property lies just outside the margin of the Athabasca basin and hosts shallow drill targets with minimal glacial cover. Historical surface samples from the Manhattan showing returned results as high as 59 800 parts per million uranium, though the site has never been drill tested.

Under the proposed terms, Vital would pay C$225 000 in cash, issue C$725 000 in shares, and incur C$4.5-million in exploration expenditures over three years. Operator fees payable to Standard will total about C$507 500. Standard will act as operator of the project prior to the option being exercised, charging a 10% fee in the first year, increasing to 12% by the third year. Upon full earn-in, a joint venture would be formed between the parties for further development of the project.

Eagle Plains Resources will retain a 2.5% net smelter returns royalty on the project. One percentage point of that royalty may be repurchased at any time for C$1-million.

The agreement is non-binding.