Business
NxGold & Mega Uranium Propose NxGold Change of Business to Uranium-Focused Investment Issuer and Portfolio Acquisition from Mega Uranium
Vancouver, British Columbia and Toronto, Ontario--(Newsfile Corp. - December 2, 2019) - NxGold...
About this update from Mega Uranium Ltd.
[{"type":"text","content":"NxGold & Mega Uranium Propose NxGold Change of Business to Uranium-Focused Investment Issuer and Portfolio Acquisition from Mega UraniumVancouver, British Columbia and Toronto, Ontario--(Newsfile Corp. - December 2, 2019) - NxGold Ltd. (TSXV: NXN) (\"NxGold\" or the \"Company\") and Mega Uranium Ltd. (TSX: MGA) (\"Mega\") are pleased to announce that, on December 1, 2019, they executed an arm's length binding term sheet (the \"Term Sheet\") which sets out the principal terms upon which it is proposed that NxGold will effect a change of business from a Tier 2 Mining Issuer to a Tier 2 uranium-focused Investment Issuer (the \"COB\") and acquire a portfolio of securities (the \"Investment Portfolio\") from Mega for approximately $10.865 million, payable in shares of NxGold (the \"Transaction\"). Completion of the Transaction is subject to numerous conditions (discussed further below), including the approvals of the TSX Venture Exchange (the \"TSXV\"), the Toronto Stock Exchange (the \"TSX\") in respect of certain matters regarding Mega and the shareholders of NxGold. Trading HaltTrading in the Company's Common Shares has been halted effective December 2, 2019 and will remain halted until the applicable requirements of the TSXV have been met.Transaction RationaleThe Board of Directors of the Company have determined that the Company's working capital would be best utilized within the framework of a uranium-focused investment company.Chris McFadden, President and CEO of NxGold, commented: \"Today's announcement represents the first step in creating the premier, publicly-traded investment company focused exclusively on the junior uranium sector. The sector has been in a structural bear market since the accident at the Fukushima Daiichi reactor in early 2011 but is now poised for recovery. UEQ, led by financial and uranium industry veterans, will provide investors a new and unique way to achieve diversified exposure to the junior uranium sector which is currently sorely missing.\"Leigh Curyer, Chairman and a director of NxGold, added: \"I emphatically support this change in direction for NxGold and look forward to continuing to play an active role in the future of UEQ. I believe the team involved in UEQ is uniquely positioned to execute on this business plan given its background in fund management and of building among the most successf...