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Mega Uranium to Option Ben Lomond & Georgetown Properties
TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (MGA: TSX) announces that it has entered into an agreement with NXGold Ltd. (“NX”) to grant to NX (f
About this update from Mega Uranium Ltd.
[{"type":"text","content":" TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (MGA: TSX) announces that it has entered into an agreement with NXGold Ltd. (“NX”) to grant to NX (following receipt by NX of the necessary conditional approvals of the TSX Venture Exchange) a two-year option to purchase Mega’s Ben Lomond uranium property located in Queensland, Australia (the “Ben Lomond Option”). As consideration for the option grant, Mega will receive from NX $180,000 in cash, 900,000 common shares, 900,000 common share purchase warrants exercisable for an equal number of common shares (the shares and warrants are collectively referred to as the “Option Securities”, and the number of Option Securities assumes the completion of a 1-for-10 share consolidation by NX prior to issuance), an option to sell to NX Mega’s Georgetown uranium property, also located in Queensland, Australia (the “Georgetown Option”), and the right to appoint one nominee to NX’s board of directors. The Ben Lomond Option will be conditional upon and may be exercised by NX subject to the satisfaction of certain conditions, including the approval of the Australian Foreign Investment Review Board, failing which the option will terminate and the Option Securities will be cancelled. NX may exercise the option and acquire the Ben Lomond property for a price of $2.5 million, payable in cash or common shares (under certain circumstances), and reimbursement to Mega of expenses incurred in respect of the property since the execution of the option agreement. The purchase of the Ben Lomond property is also subject to contingent payments to Mega of up to $2,385,000, if the monthly average spot price of uranium reaches US$50, US$75 and US$100, prior to or after closing of Ben Lomond sale. If the option is exercised, completion of the sale of the Ben Lomond property will be subject to the satisfaction of various conditions. The Georgetown Option will also be conditional upon and may be exercised by Mega subject to the satisfaction of certain conditions, including the approval of the Australian Foreign Investment Review Board, failing which it will terminate. If the Ben Lomond Option is exercised, Mega can exercise the Georgetown Option and sell the Georgetown property to NX for a price of $500,000, payable in cash or common shares of NX (under certain circumstances)...