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Mega Uranium Ltd. Signs Agreement to Sell Labrador Property
TORONTO, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (MGA: TSX) (“Mega” or the “Company”) announces that it has entered into an agreement to sell its in
About this update from Mega Uranium Ltd.
[{"type":"text","content":" TORONTO, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (MGA: TSX) (“Mega” or the “Company”) announces that it has entered into an agreement to sell its interest in the Mustang Lake uranium property, located in Labrador, Canada, to Labrador Uranium Inc. (“LUR”), a subsidiary of Consolidated Uranium Inc. (“CUR”). Mega has a 66% interest in the property (the “Interest”), which is the subject matter of its joint venture with Anthem Resources Inc. Under the terms of the agreement, Mega will receive 3 million common shares of LUR in exchange for the Interest and have the right to appoint one nominee to LUR’s board of directors on closing. Closing of the sale is subject to various conditions, including the completion of the proposed spin-out of CUR’s interest in LUR to CUR’s shareholders and the listing of LUR’s shares on a Canadian stock exchange (publicly-announced by CUR on October 18, 2021), and the waiver of Anthem’s right of first refusal in respect of the Interest. If the spin-out and listing are not completed prior to November 3, 2022, CUR will have, under certain circumstances, a thirty-day option to purchase the Interest for $1 million, payable in common shares of CUR. The proposed sale of the Interest represents another opportunity for Mega to monetize long-held capital intensive assets and expand its investment portfolio of uranium-based issuers, which includes equity positions in NexGen Energy Ltd., Toro Energy Limited, Uranium Royalty Corporation, CUR, U308 Corp. and Virginia Energy Resources Inc. 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 companies. Further information on Mega can be found on the company’s website at www.megauranium.com. For further information please contact: Mega Uranium Ltd.Richard PatricioChief Executive Officer and PresidentT: (416) [email protected] CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This press release contains forward-looking information based on current expectations in connection with the proposed sale (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 wo...