Business
U3O8 Corp. Sells the Laguna Salada Project to Focus on the Berlin Uranium and Battery Commodities Deposit
Toronto, Ontario--(Newsfile Corp. - June 11, 2021) - U3O8 Corp. ( TSXV: UWE.H ) (" U3O8 " or...
About this update from Green Shift Commodities Ltd
[{"type":"text","content":"U3O8 Corp. Sells the Laguna Salada Project to Focus on the Berlin Uranium and Battery Commodities DepositToronto, Ontario--(Newsfile Corp. - June 11, 2021) - U3O8 Corp. (TSXV: UWE.H) (\"U3O8\" or the \"Company\") announces that International Consolidated Uranium Inc. (\"CUR\") has chosen to exercise its option to purchase the Laguna Salada Project in Argentina from U3O8 Corp. The terms of the option agreement (\"Option Agreement\") were outlined in U3O8 Corp.'s press release dated December 14, 2020. The cash component of the purchase will be used to advance U3O8 Corp.'s Berlin Deposit that contains uranium, a suite of battery commodities and rare earth elements. The component of the purchase price to be paid in CUR shares will be held in U3O8 Corp.'s treasury to provide its shareholders with exposure to a broadening portfolio of uranium deposits that CUR has acquired in Australia and Canada. Consideration for the Laguna Salada ProjectA summary of the status and related terms of the Option Agreement are as follows:On signing the option agreement on December 14, 2020, CUR paid C$50,000 for U3O8 Corp. to maintain the mineral concessions constituting the Laguna Salada Project in good standing.The Option Agreement required that an option fee of C$300,000 be paid on the effective date of the Option Agreement following receipt of conditional approval of the TSX-V. This option fee has two components: C$175,000 is to be paid in cash and C$125,000 in common shares of CUR. Since the 5-Day VWAP to June 9, 2021 is C$2.22, CUR will issue 56,306 common shares to the value of C$125,000. CUR agreed to pay an additional C$50,000 in cash to keep the Laguna Salada concessions in good standing.On electing to exercise the option to purchase, which CUR has elected to do by notice to U3O8 Corp. dated today, CUR will pay C$1.5 million to U3O8 Corp. through the issuance of 675,675 common shares in CUR. These shares will be held in escrow until the mineral concessions that constitute the Laguna Salada Project have been transferred from U3O8 Corp. to CUR. U3O8 Corp. has further upside exposure to the uranium market in that if, within 10 years of the date of the Option Agreement, the spot price of uranium reaches US$50 per pound (\"/lb\"), CUR would make a payment of C$505,000. If the spot price were to reach US$75/lb, CUR would pay U3O8 Corp. C$758,000 and...