Mega Uranium Announces Ben Lomond Option Exercise
15 Junio 2022 - 10:54AM
Mega Uranium Ltd. (MGA: TSX) announces that Consolidated Uranium
Inc. (“
CUR”) has exercised its option to purchase
Mega’s Ben Lomond uranium property located in Queensland, Australia
(the “
Property”). In accordance with the terms of
the option, CUR has elected to pay the $2.5 million purchase price
for the Property by the issuance to Mega on closing of 1,104,240
common shares of CUR, at a deemed price of $2.264 per share, being
the volume weighted average trading price of the shares for the
five trading days ended two business days prior to the option
exercise.
An additional payment of $535,000 will also be
due to Mega on closing, which was contingent on the monthly average
spot price of uranium reaching US$50 subsequent to the execution of
the underlying option agreement in May 2020. CUR has similarly
elected to satisfy payment of this amount by issuing an additional
236,308 common shares to Mega. Further contingent payment
obligations of up to $1,850,000 associated with monthly average
uranium spot prices of at least US$75 and US$100 will remain in
effect for a period of twenty years. The issuance of all of the CUR
common shares to Mega on closing is subject to the approval of the
TSX Venture Exchange, failing which the amounts owing to Mega will
be paid in cash.
Subject to the satisfaction of certain customary
closing conditions, completion of the sale of the Property is
anticipated to occur in the third quarter of 2022.
In accordance with the terms of the parties’
option agreement, Mega has until October 12, 2022 to elect to sell
to CUR its Georgetown uranium property, which is also located in
Queensland, Australia, for a purchase price of $500,000 and
contingent payment obligations of up to $1,425,000 that are
dependent upon the same monthly average uranium spot prices
referenced above.
ABOUT MEGA URANIUM LTD. Mega
Uranium Ltd. is a Toronto-based mineral resources company with a
focus on uranium properties in Australia and Canada and a portfolio
of equity investments in uranium-focused public and private
companies. Further information on Mega can be found on the
company’s website at www.megauranium.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION This press release contains forward-looking
information based on current expectations in connection with the
options and underlying property sales (the “Transaction”),
including events which are proposed to occur under the terms of the
agreement. Forward-looking information is often, but not always,
identified by the use of the words “contemplate”, “estimate”,
“expect” and “anticipate” and statements that an event or result
“may”, “will”, “should”, “could” or “might” occur and any similar
expressions or negative variations thereof.
In providing forward-looking information in this
press release, we have made numerous assumptions regarding the
Transaction, which we believe to be reasonable, including
assumptions relating to the satisfaction of conditions to the
completion of the Transaction and the timing of closing.
Forward-looking information entails various risks and uncertainties
however that could cause actual results to differ materially from
those reflected in the forward-looking information. Specific risks
that could cause actual results to differ materially from those
anticipated or disclosed in this press release include, but are not
limited to failure to satisfy the conditions to complete the
Transaction, including failure to receive required approvals, and
the delay of completion or failure to complete the Transaction for
any other reason. General risks relating to capital markets,
economic conditions, and regulatory changes may also cause actual
results to differ materially from those anticipated or disclosed in
this press release. Forward-looking information are not guarantees
of future performance, and management’s assumptions upon which such
forward-looking information are based may prove to be
incorrect.
Accordingly, there can be no assurance that
actual events or results will be consistent with the
forward-looking information disclosed herein. In light of the
significant uncertainties inherent in forward-looking information,
any such forward-looking information should not be regarded as
representations by us that our objectives or plans relating to the
rights offering or standby commitment or otherwise will be
achieved. Investors are cautioned not to place undue reliance on
any forward-looking information contained herein and that such
forward-looking information are provided solely for the purpose of
providing information about our current expectations and plans
relating to the future. Readers are cautioned that such information
may not be appropriate for other purposes. In addition,
forward-looking information relates to the date on which they are
made.
We disclaim any intention or obligation to
update or revise any forward-looking information contained in this
press release, whether as a result of new information, future
events or otherwise, except to the extent required by law.
For further information please contact:
Mega Uranium Ltd.
Richard Patricio
Chief Executive Officer and President
T: (416) 643-7630
info@megauranium.com
www.megauranium.com
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