Reviewed by Alex SmithJun 16 2022
Consolidated Uranium Inc. is delighted to provide the following updates on the option agreement with Mega Uranium Ltd., which was previously announced on May 14th, 2020 and closed on June 18th, 2020, which gives Consolidated Uranium the option to acquire a 100% ownership stake in the Ben Lomond and Georgetown uranium projects in Australia.
Image Credit: Shutterstock.com/ A_Dozmorov
Mega Uranium Ltd. has been notified that Consolidated Uranium has exercised its option to purchase the Ben Lomond Project for $3,035,000, which includes $2,500,000 for exercising the option and an extra $535,000 Mega Uranium is entitled to under the agreement’s spot price contingent payment provisions.
The total amount will be met by the issuing of 1,340,548 Common Shares at a presumed price of $2.264 per share, based on the Common Shares’ 5-Day VWAP up to June 10th, 2022, the second business day before the option is exercised.
The 1,340,548 Common Shares are expected to be held in escrow awaiting the completion of the purchase at the time of issue. Mega Uranium will also be entitled to certain future payments if the option is exercised, which are based on them meeting certain milestones connected to the current price of uranium.
Mega Uranium also has the option to sell the Georgetown project to Consolidated Uranium for additional consideration of $500,000, payable in cash or shares, for 120 days following the exercise of the Ben Lomond option.
If exercised, it will entitle Mega Uranium to certain future payments contingent on the achievement of certain milestones tied to the spot price of uranium.
We believe that Australia is a highly desirable jurisdiction for owning and advancing uranium projects. Exercising the Ben Lomond option is an important step in expanding our presence in the country.
Philip Williams, Chairman and CEO, Consolidated Uranium Inc.
The acquisition is still subject to certain closing conditions that are typical of this type of transaction. All securities issued under the Option Agreement are subject to the final approval of Consolidated Uranium and will be subject to a four-month and one-day hold period from the date of issuance.