Photo by: Bloombeg
PERTH (miningweekly.com) – ASX-listed Uranium Resources has entered into a binding letter of intent to sell its Churchrock and Crownpoint properties, in New Mexico, to Laramide Resources.
Subject to the execution of definitive documentation, TSX- and ASX-listed Laramide would gain ownership of the two properties in exchange for $5.25-million in cash and a $7.25-million promissory note.
The note would have a three-year term and carried an initial interest rate of 5%, which would increase to 10% when Laramide made a commercial production decision at Churchrock.
Principal payments of $2.42-million were payable on the anniversary of the closing of the transaction in 2017, 2018 and 2019, while interest would be payable on a quarterly basis.
Laramide CEO and president Marc Henderson said the Churchrock and Crownpoint properties were a new cornerstone asset for the company, cementing its strategy of developing low-cost uranium assets in tier-one jurisdictions.
“Churchrock complements our flagship asset in Australia – Westmoreland – and our conventional hard rock projects in New Mexico and Utah, being a near-term development asset.”
The Churchrock project is estimated to host a resource of some 18.6-million pounds of uranium oxide, while Crownpoint is estimated to host a resource of 15.3-million pounds.
Uranium Resources CEO and president Christopher Jones said on Tuesday that the sale of the assets continued the company’s proactive merger and acquisition strategy, with the sale representing the second asset monetisation transaction in 2015.
“With the significant royalties that Laramide already own over the Churchrock project, this transaction makes a great deal of sense for both companies and, importantly, for Uranium Resources, raises new capital to apply to the progression of the Temrezli project, in Turkey, in a nondilutive manner.”
Jones said the transaction would significantly strengthen Uranium Resources’ financial position as it accelerated down the path of production.
Definitive documentation were expected to be signed before the end of the year, with the transaction expected to close in the first quarter of 2016, subject to a number of conditions, including stock exchange approvals, regulatory approvals and Laramide raising sufficient equity to close the transaction.
Meanwhile, Uranium Resources on Tuesday also successfully completed a merger with Anatolia Energy.
The schemes saw Anatolia shareholders receiving 0.065 Uranium Resources shares for every Anatolia share held, while Anatolia performance shareholders would receive one Uranium Resources performance share for each share held.
On completion of the merger, Anatolia shareholders now held a 40.6% interest in the combined entity and Uranium Resources shareholders the balance.
“With this transformational merger now completed, we now turn our immediate attention to completing the permitting process for the Temrezli project and moving into development during 2016,” Jones said.
An updated feasibility study on the project was expected in the first quarter of 2016.