Myriad Uranium to Sell Red Basin Uranium Project for US$2.5 Million, Retain 10% Free Carried Interest, and Enter into Strategic Alliance with a New Venture Backed by Leading U.S. Technologists

Myriad Uranium Corp. (CSE: M, OTCQB: MYRUF) has announced the sale of its Red Basin Uranium Project in New Mexico to Subatomic Red Basin, LLC for US$2.5 million, a transaction that is expected to close on or before April 17, 2026. This sale represents a significant return on investment for Myriad, which acquired the project approximately one year ago for C$525,000, translating to over a sixfold return on capital. In addition to the cash payment, Myriad will retain a 10% free carried interest in the Red Basin Project, allowing the company to benefit from any future upside without incurring additional costs. The announcement is framed within the context of a strategic alliance between Myriad and Subatomic, which aims to explore and develop other uranium opportunities beyond the Red Basin Project. This partnership is particularly timely given the increasing interest in nuclear energy as a clean power solution, which is attracting new investors into the uranium sector.

From a financial perspective, Myriad's current market capitalisation is approximately CAD 10 million, placing it within the micro-cap tier. The cash proceeds from the sale will bolster Myriad's liquidity position, although specific details regarding its current cash balance or burn rate were not disclosed in the announcement. The expected closing of the transaction is subject to various conditions, including due diligence by Subatomic and the negotiation of agreements concerning the retained interest and the strategic alliance. Given the anticipated cash inflow, Myriad appears to be in a stronger position to fund its ongoing operations and potential future projects, although the exact funding runway remains unclear without additional financial disclosures.

In terms of valuation, Myriad's sale of the Red Basin Project at US$2.5 million suggests a significant premium compared to its acquisition cost. However, to contextualise this valuation, it is essential to compare it with direct peers in the uranium exploration sector. Notably, peers such as CSE:UEX, CSE:URC, and CSE:FCU are similarly sized micro-cap uranium companies. UEX Corporation (CSE: UEX) has a market capitalisation of approximately CAD 12 million and is focused on uranium exploration in the Athabasca Basin, while Uravan Minerals Inc. (CSE: URC) operates in Saskatchewan and has a market cap of around CAD 8 million. Furthermore, Fission Uranium Corp. (CSE: FCU), with a market cap of CAD 15 million, is advancing its Patterson Lake South project. Myriad's transaction implies an enterprise value that could be benchmarked against these peers, particularly in terms of EV per resource ounce, although specific resource estimates for the Red Basin Project were not disclosed in the announcement.

The execution track record of Myriad will also be critical in assessing the implications of this announcement. The company has previously indicated a focus on strategic partnerships and resource development, and this transaction aligns with that strategy. However, potential risks remain, particularly concerning the execution of the strategic alliance with Subatomic. The success of this partnership will depend on the ability of both companies to effectively collaborate on future projects and navigate the complexities of uranium exploration and development. Additionally, the reliance on Subatomic to advance the Red Basin Project raises questions about the operational capabilities and financial backing of the new partner, which could impact Myriad's retained interest.

Looking ahead, the next measurable catalyst for Myriad will be the expected closing of the sale transaction by April 17, 2026. This timeline is contingent upon the completion of due diligence and the negotiation of necessary agreements, which will be crucial in determining the final terms of the strategic alliance. The announcement has generated a positive sentiment among investors, primarily due to the substantial return on capital and the potential for future growth through the retained interest and partnership with Subatomic.

In conclusion, the announcement regarding the sale of the Red Basin Uranium Project is classified as significant due to the substantial return on investment and the strategic implications of the partnership with Subatomic. While the transaction enhances Myriad's liquidity and positions the company to benefit from future uranium opportunities, it also introduces execution risks associated with the new alliance. Overall, this development is likely to be viewed positively by the market, as it reflects a proactive approach to capital management and strategic growth in the uranium sector.

Key insights

• ●Myriad sells Red Basin for US$2.5M, over 6x return on investment.
• ●Retains 10% interest, enhancing future upside potential.
• ●Strategic alliance with Subatomic aims for broader uranium opportunities.

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