Stallion Uranium's TSX-V Return and Strategic Asset Sale Signal Renewed Momentum in Uranium's Revival

The uranium market is undergoing a renaissance, driven by global energy security priorities and the decarbonization push. Against this backdrop, Stallion Uranium Corp.'s recent steps to resolve regulatory hurdles and divest non-core assets position it to capitalize on this shift. The company's relisting on the TSX-V and sale of its stake in 150 BC Ltd. mark critical inflection points in its journey to unlock shareholder value. Here's why investors should pay attention.

Repositioning for Growth: TSX-V Resumption and Balance Sheet Strengthening

Stallion's resumption of trading on the TSX-V on May 23, 2025, after resolving a Cease Trade Order (CTO), removes a key overhang. The CTO, triggered by delayed financial filings, had suspended trading since May 7, 2025. By meeting regulatory requirements, Stallion demonstrates its commitment to compliance—a prerequisite for sustained market access. This step is particularly timely given uranium's upward trajectory: have risen ~30% year-to-date 2025, fueled by supply deficits and reactor restarts in Asia.

Equally pivotal is the company's sale of its 11.1 million shares in 150 BC Ltd. to RML for AUD$1.0 million in cash and equity-linked instruments. This divestment de-risks its balance sheet by eliminating a non-core holding while generating liquidity. The transaction's escrowed Consideration Shares and options (59.5 million RML shares and 29.7 million options) also align with strategic priorities: focusing capital on high-potential assets in the Athabasca Basin.

Strategic Asset Sale: Prudent Capital Allocation

The sale of its 150 BC stake reflects a disciplined approach to capital allocation. By shedding a non-operational holding, Stallion redirects focus to its core projects, including the Coyote Target—a discovery with gravity survey results resembling NexGen Energy's Arrow Deposit, a world-class high-grade uranium find. This move reduces operational complexity while aligning with investor expectations for clarity and focus.

The deal's terms—cash upfront and equity in a Canadian mining peer—also provide dual benefits. The AUD$145,033 cash injection bolsters working capital, while RML's shares and options offer upside exposure to broader sector momentum. Crucially, the 12-month escrow ensures alignment with future performance, mitigating short-term dilution risks.

Catalysts: Uranium's Structural Tailwinds

Stallion's timing could not be better. The uranium market is entering a supply-constrained supercycle, with the World Nuclear Association forecasting a 50% increase in global reactor demand by 2030. Key drivers include:

1. Energy Security Priorities: Post-pandemic and geopolitical shifts (e.g., Ukraine crisis) have underscored nuclear energy's role in reducing reliance on volatile fossil fuel markets.
2. Decarbonization Push: Nuclear's status as a zero-emission baseload power source aligns with climate targets, with countries like the EU and China accelerating reactor approvals.
3. Supply Constraints: Major producers like Kazakhstan face sanctions, while Canadian and African projects face permitting delays, tightening near-term supply.

Technical and Exploration Catalysts

Stallion's ground gravity survey at the Coyote Target—a joint venture with Atha Energy—has identified a gravity low anomaly similar to NexGen's Arrow Deposit (host to 200 million lbs of uranium). This suggests high-grade mineralization potential, with plans for 3D modeling and drilling. A successful drill program here could re-rate the company's valuation significantly.

The company's Athabasca Basin portfolio—spanning 2,700 sq/km in one of the world's premier uranium regions—also positions it as a consolidator. With many smaller players seeking exits amid rising costs, Stallion's balance sheet flexibility post-asset sale could enable accretive acquisitions.

Investment Considerations

Bull Case: If uranium prices breach $40/lb (current ~$35/lb), Stallion's high-margin Athabasca assets could generate outsized cash flows. A positive drill result at Coyote by early 2026 would likely trigger a valuation rerating, given the deposit's scale potential.

Bear Risks: - Regulatory delays in financial filings could reignite CTO concerns.- Uranium price weakness if reactor delays or sanctions relief materialize.- Exploration risks at Coyote, though mitigated by Arrow-like geophysics.

Conclusion: A High-Reward Opportunity in the Uranium Revival

Stallion Uranium's relisting and strategic asset sale signal a maturing corporate profile ready to capitalize on uranium's structural upturn. With a streamlined balance sheet, a premier exploration portfolio, and exposure to a tightening market, the stock presents a compelling risk/reward trade. Investors seeking exposure to the uranium renaissance should monitor the company's Q4 2025 drilling results at Coyote as a near-term catalyst.

Jeanna's Take: Buy the dip. The combination of balance sheet repair, strategic focus, and exposure to a supply-constrained uranium market makes Stallion a top pick for thematic investors. Target price: CAD$0.25/share by year-end 2025, with upside to CAD$0.40 if Coyote delivers.