Mustang Energy Corp.'s Strategic Flow-Through Financing and Exploration Potential in the Athabasca Basin

Mustang Energy Corp. (TSX-V: MUS) has positioned itself at the intersection of capital efficiency and strategic exploration in the uranium and critical minerals sectors. As global demand for energy transition metals intensifies, the company's recent flow-through financing and its focus on the Athabasca Basin-a region synonymous with high-grade uranium deposits-offer a compelling case for investors seeking exposure to a sector poised for long-term growth.

Capital-Raising Efficiency: A Tax-Advantaged Approach

In December 2025, Mustang executed a non-brokered flow-through private placement, raising C$180,000 through the issuance of 2,000,000 critical flow-through units (FT Units) at C$0.09 per unit. Each FT Unit includes a common share issued on a flow-through basis and a warrant, with the proceeds earmarked for resource exploration expenses. This structure allows investors to claim tax deductions for the costs incurred, making it an attractive vehicle for high-net-worth individuals and institutions seeking to optimize their tax liabilities while supporting exploration.

The efficiency of this approach is underscored by the company's commitment to renouncing exploration expenses by December 31, 2025, ensuring compliance with Canadian tax regulations and maximizing the utility of the raised capital. By aligning investor incentives with project development, Mustang has demonstrated a nuanced understanding of capital markets, leveraging flow-through mechanisms to secure funding without diluting existing shareholders excessively.

Athabasca Basin Projects: Geological Potential and Strategic Positioning

Mustang's exploration portfolio in Saskatchewan's Athabasca Basin includes the 914W Uranium Project, a 77,318-hectare property located 48 km southwest of Cameco's Key Lake Operation. The project sits within the Western Wollaston Domain, a geological setting historically associated with unconformity-hosted uranium mineralization. Recent TDEM surveys have identified a conductive zone with favorable characteristics for uranium deposits, while historical data from nearby zones like Scurry Rainbow and Don Lake highlight the region's potential.

The company's 2025 field program includes detailed rock and soil sampling, geophysical surveys, and diamond drilling, all aimed at de-risking the project and identifying drill-ready targets. This systematic approach is critical in a basin where most properties remain underexplored despite their proximity to known uranium hubs. Additionally, Mustang's expansion into rare earth elements (REEs) at 914W-driven by the growing demand for REEs in clean energy technologies-further diversifies its value proposition.

Uranium Market Dynamics: Supply Constraints and Long-Term Tailwinds

The uranium market in Q3 2025 has exhibited a divergence between spot prices and long-term contract pricing. While the spot price of uranium has oscillated between $63 and $83 per pound, term contracts have steadily climbed to $86–$90 per pound, reflecting utilities' urgency to secure supply amid geopolitical disruptions and supply chain bottlenecks. This trend is underpinned by the global nuclear energy outlook: reactor capacity is projected to nearly double by 2040, driving uranium demand from 68,900 metric tons in 2025 to over 150,000 metric tons by 2040.

Mustang's capital-raising strategy aligns with these fundamentals. By directing proceeds toward exploration in the Athabasca Basin-a region responsible for 25% of the world's uranium production-the company is positioning itself to capitalize on the anticipated supply deficit. The U.S. Department of Energy's initiatives to strengthen domestic fuel supply chains further reinforce the strategic relevance of Mustang's projects, particularly as utilities seek to diversify away from Kazakhstan, which currently supplies 40% of global uranium.

Critical Minerals Synergy: Copper, Silver, and the Energy Transition

Beyond uranium, Mustang's exploration projects in Newfoundland and Labrador, such as the Bridal Veil Copper–Silver Project, highlight its exposure to critical minerals essential for the energy transition. Grab samples from Bridal Veil have returned up to 9.4% copper, 242 g/t silver, and 3.75 g/t gold, with mineralization hosted in shear-zone structures amenable to open-pit mining.

The demand for copper and silver is surging due to their roles in electric vehicles, grid infrastructure, and AI-driven data centers. According to the International Energy Agency, copper demand is expected to grow by 30% through 2040, while silver demand is driven by photovoltaic panels and high-efficiency electronics. Mustang's dual focus on uranium and base metals positions it to benefit from multiple demand drivers, reducing its exposure to sector-specific volatility.

Risk and Reward: Balancing Exploration Costs with Market Potential

While Mustang's strategy is well-aligned with macroeconomic trends, exploration remains inherently risky. The 914W Project, despite its geological promise, requires significant follow-up work to confirm the presence of economic mineralization. Additionally, uranium prices could remain range-bound in the short term if utilities delay long-term contracts or if geopolitical tensions ease.

However, the company's use of flow-through financing mitigates some of these risks by attracting investors who are tax-motivated rather than purely profit-driven. This allows Mustang to advance projects without immediate pressure to generate returns, a critical advantage in early-stage exploration. Furthermore, the structural supply deficit in uranium and critical minerals-projected to reach 197 million pounds by 2040-provides a strong tailwind for companies that can bring new supply online.

Conclusion: A Strategic Play on Energy Transition Minerals

Mustang Energy Corp.'s flow-through financing and Athabasca Basin projects represent a strategic alignment with the energy transition's demand for uranium and critical minerals. By leveraging tax-advantaged capital and targeting underexplored, high-potential assets, the company is well-positioned to benefit from the long-term growth of the nuclear and clean energy sectors. For investors, Mustang offers a compelling blend of capital efficiency, geological upside, and macroeconomic tailwinds-a rare trifecta in the junior mining space.