Mustang Energy Corp. Enters Into Arrangement Agreement to Spin Off Ford Lake, Roughrider South and Cigar Lake East Projects

Core Viewpoint - Mustang Energy Corp. has entered into an arrangement agreement to transfer its properties to its subsidiary, Allied Strategic Resource Corp., and spin out Allied shares to Mustang's securityholders, aiming to unlock value and focus on development [1][10]. Company Overview - Mustang Energy Corp. is a Canadian mineral exploration company focused on uranium and critical mineral assets, holding a portfolio of 147,153 hectares in Saskatchewan's Athabasca Basin, a premier uranium district [13]. Arrangement Details - The arrangement involves transferring Mustang's rights to the Ford Lake, Roughrider South, and Cigar East properties to Allied, which will become a separate reporting issuer [2][6]. - Mustang will retain interests in other projects, with a strategic focus on the Yellowstone property [3]. Properties Overview - The Ford Lake Property spans 7,431 hectares and is strategically located near significant uranium deposits, including the Key Lake Mine [4]. - The Roughrider South and Cigar Lake East properties cover 3,443 hectares and are near the Cigar Lake Uranium Mine, indicating strong uranium potential [5]. Transaction Structure - The transaction includes a share capital reorganization, where existing Mustang shares will be renamed and exchanged for new shares and Allied shares [6][7]. - Mustang shareholders will receive a proportionate interest in Allied upon completion of the arrangement [7]. Financing and Listing - Allied plans to raise approximately $1,250,000 through securities offerings to fund exploration activities and working capital [8]. - Allied intends to seek a listing on the Canadian Securities Exchange [8]. Strategic Rationale - The arrangement is expected to allow for independent valuation of the properties, potentially unlocking additional value for shareholders [10]. - Isolating the Ford Lake Property is anticipated to accelerate its development by enabling focused resource allocation [10]. Approval Process - The arrangement requires approval from the Supreme Court of British Columbia and a special shareholder meeting, expected to be held on November 14, 2025 [11][12]. - Completion of the arrangement is anticipated by the end of Q4 2025, subject to necessary approvals [12].