Source: Sharecast
The AIM-traded firm said the acquisition marked its third uranium asset in the US, adding to its Squaw Creek project in Wyoming and the Uravan project in Colorado.
It said the Red Basin project covers 15,000 acres in a historically mineral-rich area where recent radiometric surveys indicate potential for 40 million pounds of triuranium octoxide.
Metals One subscribed $0.3m for a 10% interest in NovaCore and received two tranches of warrants to acquire a further 20%.
Warrant tranche one would allow Metals One to increase its stake by 10% at an exercise price of 58.7 cents per share, expiring 30 September.
The second warrant tranche would offer another 10% under the same terms, expiring 30 November.
Both can be settled in cash or shares.
Metals One said NovaCore had completed initial exploration work, including land staking, geophysical surveys and permitting preparation, with drilling planned for late 2025.
Its board includes Neil Herbert and Douglas Christopherson, both formerly of Uramin, which was sold for $2.5bn.
“This investment in NovaCore provides Metals One with access to one of the most prospective yet underexplored uranium districts in the western US,” said chairman Craig Moulton.
“Our technical team is impressed with the systematic approach NovaCore has taken in combining historical data with modern surveys to define large-scale, high-impact targets.”
Separately, Metals One announced the issue of 15 million new shares to its employee benefit trust at nominal value for future incentive purposes.
It also confirmed the exercise of warrants over 53.7 million ordinary shares.
Following the issues, the company said its total issued share capital stood at 368,147,750 ordinary shares.
Admissions of the new shares to trading on AIM was expected to become effective on 21 and 24 July.
At 1555 BST, shares in Metals One were up 3.35% at 12.35p.
Reporting by Josh White for Sharecast.com.