Consolidated Uranium (CUR) has agreed to accumulate Canadian uranium improvement and exploration firm Virginia Power Sources (VUI).
Virginia Power’s property embrace a 100% stake within the Coles Hill Uranium Challenge situated in south central Virginia, US.
Based on the agreed phrases, shareholders of Virginia Power will obtain 0.26 widespread shares of Consolidated Uranium for every share held.
Upon completion of the transaction, Consolidated Uranium and Virginia Power shareholders will respectively maintain 82.4% and 17.6% stakes within the mixed firm.
The transaction has an implied fairness worth of $32.2m.
Consolidated Uranium chairman and CEO Philip Williams mentioned: “The acquisition of Coles Hill enhances our present US portfolio of property, whereas considerably growing our uranium publicity globally.
“We’ve three buckets of initiatives in our portfolio: near-term manufacturing, mid-term exploration and improvement and longer-term name choices which offer publicity to giant, high-quality initiatives with historic impediments to development. At the moment, Coles Hill matches into the latter class.”
In relation to the transaction, Consolidated Uranium has signed a subscription settlement with Virginia Power.
As a part of the subscription settlement, Virginia Power will situation two million of its shares, at $0.50 apiece, on a non-brokered non-public placement foundation to Consolidated Uranium.
With the non-public placement, Consolidated Uranium will personal 3% of the issued and excellent shares of Virginia Power.
Proceeds of the concurrent non-public placement will probably be utilized by Virginia Power to fund the challenge’s lease extensions, common and administrative bills and transaction bills.
Virginia Power chairman and CEO Walter Coles Sr mentioned: “We see this transaction as an amazing consequence for Virginia Power shareholders who will obtain an instantaneous and substantial premium to the Virginia Power share value.
“Importantly, the transaction will protect our shareholders’ publicity to the Coles Hill challenge whereas offering diversification to a wonderful portfolio of near-term productions property within the US, in addition to a sturdy portfolio of exploration and improvement initiatives all over the world.”
The Coles Hill Challenge is claimed to be the nation’s largest undeveloped uranium deposit and among the many largest initiatives by whole uranium assets on the earth.
Virginia Power subsidiary Virginia Uranium controls the mineral rights, sure floor rights, and leasehold improvement and working rights on the Coles Hill challenge.