Standard Uranium (TSXV:STND) - $3M Raise for Major 2024 Drill Program on Davidson River Project

Company Interviews

Interview with Jon Bey, CEO of Standard Uranium Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/standard-uranium-tsxvstnd-project-generator-model-with-extensive-exploration-5128

Recording date: 16th May 2024

Standard Uranium is an attractive opportunity for uranium investors, with a prospective project portfolio in Saskatchewan's Athabasca Basin, a top global jurisdiction for high-grade uranium discoveries. The Canadian junior explorer has assembled an enviable land package, headlined by its flagship Davidson River project, and recently shifted to a savvy project generator model which minimizes dilution while allowing for steady news flow from a pipeline of partner-funded projects.

CEO John Doe has positioned Standard Uranium for an active and catalyst-rich 2024. With $1.4 million in the treasury and an ongoing $3 million capital raise, the company is well funded to execute on its ambitious plans. Out of 11 total projects, 7 will see exploration this year including 4-5 drill programs. The key focus will be on Davidson River, where Standard sees potential for a basement-hosted deposit analogous to NexGen Energy's Arrow discovery. A 5,000-6,000m summer drill program is planned to vector in on that Tier 1 potential.

Meanwhile, the project generator portfolio provides multiple shots on goal via partner-funded drill programs. Previous drilling at Atlantis hit uranium mineralization in 5 out of 5 holes, an impressive hit rate, while the Canary and Sun Dog projects will also see first-pass drilling funded by JV partners. These partners can earn a 75% stake by spending $6-7 million over 3 years, with Standard receiving cash and shares plus a 10-12% operator fee for managing the projects.

This unique model allows Standard to focus its own raise dollars on Davidson River while bringing in $100,000-$200,000 per month in partner payments to cover overhead. It's a smart strategy for weathering the junior resource bear market and provides a platform for growth as the uranium market heats up. With the global push for carbon-free energy accelerating post-COVID, uranium prices look poised for a significant run as demand outstrips supply.

For investors, Standard Uranium offers a compelling combination of discovery potential, a savvy business model, strong funding, and a tight share structure. Speculative resource investors can initiate a position ahead of first-pass drill results from Atlantis, Canary and Sun Dog as well as a potential major discovery at Davidson River. Any one of these could serve as a significant catalyst against a backdrop of rising uranium prices as nuclear energy sees a global renaissance.

The key risks relate to the early-stage nature of the projects and the possibility of disappointing drill results. However, these are mitigated by the multiple projects being advanced simultaneously, the proven uranium endowment of the Athabasca Basin, and management's strong technical acumen. With a market capitalization of just C$8.5 million, Standard Uranium is an attractive, well-rounded way to play the unfolding uranium bull market with significant upside potential.

View Standard Uranium's company profile: https://www.cruxinvestor.com/companies/standard-uranium

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