07:18 AM EDT, 06/05/2025 (MT Newswires) -- Mustang Energy ( MECPF ) overnight Wednesday said it signed two strategic option agreements with Thunderbird Resources to acquire an undivided 80% interest in certain mineral tenements held by Thunderbird in the Athabasca Basin of Northern Saskatchewan.

One of the agreements, dated June 3, is to acquire an undivided 80% interest in certain mineral tenements held by Thunderbird in and around Cluff Lake. The second option agreement, dated June 3, is to acquire an undivided 80% interest in certain mineral tenements held by Thunderbird in and around Surprise Creek, Pring Lake, and Ellis Bay/Bob Lake.

According to the Cluff Lake agreement, to acquire an 80% interest in the Cluff Lake Project, which spans a total of 13,977 hectares, the company will issue common shares with a total value of $200,000, make cash payments of $120,000 over a maximum of four years and commit $3 million towards exploration on the project over the same maximum four-year period.

A company statement noted that once it earns an initial 60% interest in the Cluff Lake Project, it will enter into a formal joint venture agreement with Thunderbird "to fully document the terms and conditions upon which the joint venture shall operate for the project." After the company earns the additional 20% interest, Thunderbird will retain a 2% net smelter return royalty on the Cluff Lake Project.

To acquire an 80% interest in the Surprise Creek Project, which spans a total of 20,652 hectares, the company will issue common shares with a total value of $200,000, make cash payments of $120,000 over a maximum of four years, and commit exploration expenditures of $3 million over the same maximum four year period.

Once the company earns 51% interest in the Surprise Creek Project, it will enter into a formal joint venture agreement with Thunderbird. After it earns the additional 29% interest, Thunderbird will retain a 2% net smelter return royalty on the Surprise Creek Project.

"We are excited to partner with Thunderbird Resources on the Cluff Lake North and Surprise Creek Projects," said Mustang Energy ( MECPF ) Chief Executive Nicholas Luksha. "This agreement advances Mustang's Athabasca Basin strategy. With a strong foundation in place through targeted claim staking and acquiring early-stage projects, we're now focused on advancing high-priority, drill-ready assets. Our technical team is developing plans for field programs at Cluff Lake North and Surprise Creek Projects to refine drill targets and evaluate underexplored structural corridors with strong discovery potential."