Vancouver, Canada / Asunción, Paraguay – Vanguard Mining Corp. (CSE: UUU, OTC: RECHF, Frankfurt: SL5) today announced a significant step in its uranium exploration strategy with the signing of a non-binding Letter of Intent (LOI) to acquire four prospective mineral concessions, collectively known as the "Yuty Prometeo Project," spanning approximately 90,000 hectares (222,395 acres) within the Parana Basin of southeastern Paraguay.
The strategically important land package comprises three San Jose concessions and one Yuty Uno concession, all situated in close proximity to Uranium Energy Corp.'s (UEC) substantial Yuty uranium deposit. This acquisition positions Vanguard in one of South America's most promising uranium districts.
David Greenway, CEO of Vanguard Mining, commented on the development, stating, "The acquisition of the Yuty Prometeo properties represents a transformative advancement for Vanguard's uranium exploration endeavors. These highly prospective concessions, bordering UEC's multi-million pound Yuty deposit, strategically locate our company within a burgeoning South American uranium hub. We are eager to leverage historical exploration data with modern techniques to unlock the full potential of this project."
The LOI outlines the preliminary terms for the transaction, with the intention of leading to a definitive binding agreement. Key terms include:
A payment of US$20,000 to Paraguay Uranium S.A. ("Paraguay Uranium") upon the signing of the LOI.
The issuance of an aggregate of 8,000,000 common shares of Vanguard Mining to the shareholders of Paraguay Uranium, pro rata to their holdings.
An additional payment of US$20,000 to Paraguay Uranium upon Vanguard securing a "Prospecting Permit" enabling further surface exploration and exploratory drilling.
Paraguay Uranium S.A., in which 1302343 BC Ltd. currently holds an 85% interest, is the legal and beneficial owner of an 85% interest in the Yuty Prometeo Uranium Project located in southeastern Paraguay.
Details of the Yuty Prometeo Uno Concession
The Uno concession, part of the broader Yuty Prometeo Project, covers approximately 27,666 hectares (68,368 acres) and directly abuts UEC's Yuty Project. To date, 28 drill holes have been completed on this concession, revealing uranium assays ranging from 0.05% to 0.10% triuranium octoxide (U₃O<0xE2><0x82><0x88>). Geophysical surveys, drilling data, and surface sampling indicate that the Prometeo trend aligns with the same mineralization trend as UEC's Transandes deposit.
Details of the Yuty Prometeo San Jose Concessions
The San Jose concessions consist of three contiguous claims totaling approximately 62,210 hectares (153,754 acres), situated along the Upper Permian-Carboniferous contact. These concessions are located approximately 100 kilometers northwest of UEC's Yuty Project and 40 kilometers west of their Coronel Oviedo Project. A radiometric vehicle survey conducted across a 40 km x 10 km area of these concessions identified significant uranium anomalies.
Overview of UEC's Yuty ISR Project
The Yuty ISR (In-Situ Recovery) Project, wholly owned by Uranium Energy Corp., encompasses approximately 117,359 hectares (290,000 acres) within the Parana Basin, roughly 200 kilometers southeast of Paraguay's capital, Asunción. This region is known to host several uranium deposits, including Figueira and Amorinopolis in Brazil. Preliminary studies suggest that the Yuty deposit is amenable to ISR extraction, a low-cost method successfully employed by UEC in Texas.
Modern exploration at Yuty commenced in 1976 when Anschutz Corporation of Denver, in partnership with Korea Electric Power Corporation and Taiwan Power Company, conducted regional uranium exploration across a vast 162,700 square kilometer exclusive concession covering the eastern half of Paraguay. Anschutz identified several target areas, including Yuty, and drilled approximately 75,000 meters of core and rotary holes between 1976 and 1983 before ceasing operations due to declining uranium prices.
In July 2006, CUE Resources Ltd. acquired an option on the Yuty Project and initiated its own rotary and diamond drilling campaigns. Between 2007 and 2010, CUE completed 256 drill holes totaling 31,000 meters, eventually securing 100% ownership of the project. Uranium Energy Corp. acquired 100% ownership of the Yuty Project on March 30, 2012, through the acquisition of all outstanding shares of CUE Resources Ltd.
Resource Estimate
The current publicly disclosed resource estimate for UEC's Yuty Project stands at 8.962 million pounds of triuranium octoxide (U₃O<0xE2><0x82><0x88>) in the measured category and 2.203 million pounds of triuranium octoxide (U₃O<0xE2><0x82><0x88>) in the indicated category, as detailed in UEC's technical report titled "Yuty Uranium Project Initial Assessment US SEC Subpart 1300 Regulation SK Report, Paraguay SA" with an effective date of July 1, 2022.
About Paraguay
The Republic of Paraguay, situated in the heart of South America and bordering Brazil, Argentina, and Bolivia, is an emerging mining jurisdiction. Known for its political stability, low country risk, and investment-friendly regulatory environment, Paraguay offers a favorable framework for mineral exploration and development. The nation boasts a democratic government, strong legal protections for foreign investment, and a growing interest in leveraging its underexplored mineral potential, particularly in uranium, rare earth elements, and base metals. With its abundant land, relatively low population density, and improving infrastructure, Paraguay is increasingly recognized as a geopolitically stable and strategically attractive investment destination for mining companies seeking long-term growth opportunities.
About Vanguard Mining Corporation
Vanguard Mining Corporation is a Canadian mineral exploration company focused on the discovery and development of high-value strategic minerals. The Company is currently advancing uranium exploration projects in the United States and Paraguay, with a focus on identifying and developing assets critical to the global energy transition. Vanguard is committed to creating value through responsible exploration and the acquisition and advancement of promising uranium properties.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Lawrence Segerstrom, a consulting geologist and a "Qualified Person" as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
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