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Mega Uranium Announces Ben Lomond Option Exercise
TORONTO, June 15, 2022 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (MGA: TSX) announces that Consolidated Uranium Inc. (“CUR”) has exercised its option to purchase Me
About this update from Mega Uranium Ltd.
[{"type":"text","content":" TORONTO, June 15, 2022 (GLOBE NEWSWIRE) -- 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 under...