Thunderbird’s Uranium Future Hinges on Mustang’s Exploration Success and Market Moves

Strategic Uranium Partnership

Thunderbird Resources Limited (ASX, THB) has taken a decisive step to advance its Canadian uranium assets by entering into a binding option agreement with Mustang Energy Corporation (CSE, MEC). Under the deal, Mustang can acquire up to an 80% interest in Thunderbird’s Cluff Lake North and Surprise Creek projects, both located in the prolific Athabasca Basin, a globally renowned uranium district.

This partnership reflects Thunderbird’s strategic intent to leverage Mustang’s regional expertise and exploration capabilities, while freeing up capital and management focus to accelerate development of its core gold-antimony projects in New South Wales, Australia. Mustang’s established presence in the Athabasca Basin and complementary project portfolio position it well to unlock value from these highly prospective uranium and copper targets.

Project Highlights and Exploration Potential

The Cluff Lake North project, situated near the historic Cluff Lake uranium mine, features multiple basement conductors identified through recent geophysical surveys, indicating promising pathways for uranium mineralisation. Meanwhile, the Surprise Creek project not only offers uranium potential but also hosts significant copper mineralisation targets, with historical drilling and rock chip sampling revealing high-grade copper and uranium assays.

Mustang’s upcoming ground exploration, supported by recent government approvals for drilling permits, aims to test these targets rigorously. The projects’ geological settings, including structural corridors and unconformity zones, are analogous to known high-grade uranium deposits, underscoring the exploration upside.

Deal Structure and Financial Implications

The option agreement is structured in two stages. Mustang will initially earn a 60% interest in Cluff Lake North and a 51% interest in Surprise Creek by issuing shares to Thunderbird, paying cash, and committing to CAD 1 million in exploration expenditures on each project within two years. Upon meeting these milestones, Mustang can earn an additional 20% and 29% interest respectively by spending a further CAD 2 million per project over the following two years.

Thunderbird will receive cash payments, shares in Mustang, and retain a 2% net smelter returns royalty on any minerals produced, ensuring ongoing exposure to potential project success without bearing the exploration risk. This arrangement also aligns incentives for both parties to advance the projects efficiently.

Broader Corporate Context

In parallel, Thunderbird has recently monetised its shareholding in Firetail Resources, generating approximately AUD 980,000 in cash. These funds are earmarked to support exploration and administrative costs for its NSW gold-antimony projects, Rockvale and Kookabookra, which remain central to the company’s growth strategy.

Executive Chairman George Ventouras highlighted the timing of the partnership as fortuitous, given the improving market sentiment towards uranium exploration. The collaboration with Mustang not only accelerates the development of Thunderbird’s Canadian uranium assets but also crystallises value for shareholders while maintaining a balanced and diversified portfolio.