VANCOUVER, British Columbia, October 09, 2025 (GLOBE NEWSWIRE) — Mustang Energy Corp. (CSE:MEC) (“Company” or “Mustang“), announces the conclusion of a settlement agreement dated October 9, 2025 (“Agreement agreement“) with its wholly owned subsidiary Allied Strategic Resource Corp. (“Ally“), pursuant to which the Company intends to: (i) transfer all of its right, title and interest in and to its Ford Lake, Roughrider South and Cigar East properties (collectively, “Characteristics“), located in the Athabasca Basin, Saskatchewan, Canada, and (ii) allocate all Allied securities received in exchange for the Properties (“Allied shares“) to holders of Mustang securities on a pro rata basis (“Spin out“), all in accordance with the statutory plan of the organization (“Agreement“, which will operate in accordance with Part 9, Section 5 of the Business Corporations Act (British Columbia).
The agreement will result in Allied becoming a separate “reporting issuer” in Alberta, British Columbia and Ontario and allow it to focus on developing the Ford Lake Property. The Ford Lake Property will be the tangible property of Allied for purposes of National Instrument 43-101 – Disclosure Standards for Mineral Projects.
Upon completion of the agreement, the Company will retain its interests in the Brown Lake, Dutton, Yellowstone, 914W, Spur, Thunderbird and Konigsstuhl projects, with a strategic focus on the Yellowstone Field.
Ford Lake Real Estate
The Ford Lake property is strategically located in the eastern Athabasca Basin and consists of three parcels covering 7,431 hectares. The Ford Lake Property is located 2 km from the Fox Lake Road and 12 km from the all-season highway between the Key Lake Mill and MacArthur River Mine. The Ford Lake property is located close to the boundaries of the Mujatic and Wollaston domains, which are associated with numerous deposits. The area's uranium wealth is supported by significant deposits at the Key Lake Mine, located just 15 km to the southeast and less than 30 km from Cameco's Millennium deposit and Denison Mines Corp's Griffin and Phoenix deposits. The recent discovery of a high-grade well by CanAlaska Uranium Ltd. at Moon Lake is just 15 km to the northeast. The depth of the unconformity at the Ford Lake project is 100–400 meters.
Roughrider South and Cigar Lake East Real Estate
The Cigar Lake East and Roughrider South projects are each located in the eastern Athabasca Basin of northwestern Saskatchewan, close to the highly prospective Wollaston-Mujatic transition zone. The Cigar Lake East and Roughrider South projects consist of four parcels totaling 3,443 hectares and are in close proximity to all-season roads and power lines. The area's uranium wealth is evidenced by the significant deposits surrounding it, including the world-class Cigar Lake Uranium Mine and the Rabbit Lake Uranium Mine in the northeast.
Deal
The agreement will include a transfer of ownership to Allied, a reorganization of Mustang's share capital and a securities exchange that will result in, among other things, Mustang shareholders receiving shares of Allied stock. Existing shares of common stock in the capital of Mustang will be renamed and redesignated as shares of Class A common stock (each a “Mustang Class A Share“) and Mustang will create a new class of voting common shares (each “New Mustang Promotion“) Each Class A share of Mustang will be exchanged for one share of New Mustang and such number of Related Shares as will be determined on the effective date of the Agreement.
Upon completion of the agreement, Mustang shareholders will receive a proportionate interest in Allied.
In connection with the Transaction, Allied intends to seek listing of the Allied Shares on the Canadian Securities Exchange (the “Canadian Securities Exchange”).CSEIn addition, Allied will conduct one or more securities offerings to raise gross proceeds of approximately $1,250,000 (“Union funding“) or such other amount as Allied's board of directors may determine, among other things, to finance its exploration activities at the properties and to finance its working capital needs. Certain Mustang Insiders may participate in Allied Financing.
The Company believes that the Agreement is in the best interests of both the Company and its shareholders for several reasons. Currently, capital markets tend to value properties as part of Mustang's broader portfolio. By completing the agreement, the Properties will be independently valued, which is expected to create additional value for Mustang shareholders. In addition, isolating the Ford Lake Property, which will become Allied's primary property, is expected to accelerate its development by allowing Allied to focus resources and attention. From Mustang's perspective, the separation will allow the company to concentrate on developing its remaining assets without the operational and financial constraints of managing properties. Finally, Mustang shareholders will benefit from ownership of two separate public companies, each with a clear strategic mandate, subject to CSE approval of Allied's listing application.
Permissions
The company intends to obtain an interim order (“Temporary order”) from the Supreme Court of British Columbia (“Court“) to authorize the Company to convene a meeting of shareholders to, among other things, approve the Agreement, which is expected to take place on November 14, 2025. The agreement will be subject to, among other things, final approval of the court, approval by at least two-thirds of the votes cast at a special meeting of stockholders of Mustang stockholders (“Meeting“) and CSE approval.
The Agreement is expected to close by the end of the fourth quarter of 2025, subject to receipt of the above approvals and satisfaction of other closing conditions.
Additional information about the Transaction and other matters to be considered at the Meeting will be included in an information circular that will be prepared and delivered to Mustang stockholders in connection with the Meeting.
Mustang Energy Corp.
Mustang is a Canadian mineral exploration company focused on the discovery and development of high-potential uranium deposits and critical mineral assets. The Company owns a portfolio of 147,153 hectares of strategically located properties in the Athabasca Basin in Saskatchewan, one of the world's leading uranium districts. Mustang advances early stage exploration through modern techniques and a disciplined, data-driven approach. The company strives to create long-term value through responsible exploration and a focus on high-impact targets in underexplored areas. For more information visit www.mustangenergy.ca and company profile on SEDAR+ at www.sedarplus.ca.
For more information contact:
Mustang Energy Corp.
Attention: Nikolay Luksha, General Director and Director
Phone: (604) 838-0184
Neither the CSE nor the Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future results and reflect the Company's management's expectations or beliefs regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends,” “believes,” or “expects,” or variations of such words, phrases or statements that certain actions, events or results “may,” “could,” “should,” “occur,” or “occur.” This information and these statements are referred to herein as “forwarding‐“search statements” are not historical facts and are made as of the date of this press release and include, but are not limited to, statements regarding discussions of future plans, estimates and projections and statements of management's expectations and intentions with respect to, among other things: whether the Company will proceed with the spin-off as currently proposed or at all, the expected timing of the spin-off, the expected terms and structure of the spin-off, the ability of the parties to satisfy the closing conditions and obtain necessary approvals, the Company's expectations regarding the development of its other properties, confidence that the Spin-Off will provide value as a stand-alone asset, that Allied will complete the financing of Allied and that Allied will successfully complete and be approved for listing and trading on the CSE. In making the forward-looking statements in this press release, the Company has made several significant assumptions, including, but not limited to, the assumption that the Company will be able to obtain regulatory, judicial determinations. or shareholder approval that Mustang or Allied will be able to complete any required financing, as well as other risks as set forth in the Company's periodic disclosure documents available on SEDAR+. Although the Company's management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as expected, estimated or intended. There can be no assurance that such statements will prove to be accurate or that the Spin-off will occur or that, if the Spin-off does occur, it will be completed on the terms described above as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that use of such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information. statement, forward-looking information or financial forecast, which are incorporated herein by reference except as required by applicable securities laws.
