Uranium explorer Australian-American Mining is facing an aggressive campaign run by Canadian firm Crosshair Exploration & Mining. The Canadian company has been trying to swap Australian-American Mining‘s North American uranium leases for a pile of Crosshair Exploration & Mining’s stock.
The previously private discussion was made public by a frustrated Crosshair Exploration & Mining through press releases and a website. The company has also written directly to the shareholder of Australian American Mining to get support for their effort and unlock the value in the company.
The proposal says that Australian American Mining would get consideration of US$12.85 million for their uranium assets payable in Crosshair shares. Once Crosshair acquired the Australian American Mining Uranium Assets, they would be responsible for progressing them and enhancing their value. The drastic step was taken by Crosshair Exploration & Mining as they felt that the Australian American Mining board had not been able to engage in meaningful dialogue to discuss the proposal properly.
Executive Chairman of Crosshair, Mark Morabito said that the offer represented a potential win-win opportunity for both companies. He said that their proposal allowed AusAm to immediately benefit from a significant premium in the value of their assets, whilst allowing Crosshair to accelerate the development of the uranium assets by applying their proven expertise, based here in North America, to advancing the assets.