08:51 AM EDT, 05/29/2025 (MT Newswires) -- Fortune Bay ( FTBYF ) on Thursday said it signed a letter of intent granting Neu Horizon Uranium an option to acquire an 80% stake in The Woods uranium projects in Saskatchewan.

Under the terms, Neu will pay A$50,000 cash, issue A$750,000 in shares and spend A$3 million on exploration. Fortune Bay ( FTBYF ) will act as the operator of the project during the option period. The joint venture will allow for dilution and should Fortune Bay's ( FTBYF ) interest fall below 10%, the company will receive a 2% net smelter returns royalty, which can be halved for A$5 million.

"The projects represent a district-scale opportunity for discovery within a highly prospective region that has seen very little exploration to date, despite favorable geology and a significant endowment of historical uranium occurrences," CEO Dale Verran said. "The agreement to terms for The Woods is a timely development for Fortune Bay ( FTBYF ), reiterating our Company's strategy to focus on our two advanced gold projects, while retaining upside in partner-funded opportunities generated through low-cost acquisition."

Fortune Bay's ( FTBYF ) share price jumped 7.6% on Wednesday to $0.57 on the TSXV.