Global Uranium and Enrichment (ASX:GUE) has entered into a binding agreement to divest 80% of its interest in the Lake Johnston Project to Intra Energy Corporation (ASX:IEC).
The $27.58 million market capitalisation company will sell the majority stake for up to $2.125 million, which includes a cash consideration of $175,000 and the issue of 30 million IEC shares at completion of the sale.
Global Uranium and Enrichment closed trade 15.384% higher on Monday 15 January 2024.
The remaining deferred consideration will be issued in shares or paid in cash subject to certain milestones being achieved as detailed below.
Global Uranium will retain a 20% interest in Lake Johnston and will also be granted a 1% gross revenue royalty by IEC, payable on product extracted, mined and sold from the project.
The company intends to use the initial cash consideration towards ongoing exploration and development of its North American uranium assets.
“The critical need and role of nuclear energy as a leading clean energy source is growing every day and as an advanced uranium developer, we are focused on building our portfolio in size and scale and establishing the company as a key North American uranium producer“
Global Uranium’s Managing Director Andrew Ferrier says it is an ‘excellent transaction’ as the company continues to focus on developing its advanced North American uranium portfolio, while maintaining exposure to Lake Johnston.
“Lake Johnston is an exciting asset, located in a proven lithium region which has been highlighted by recent discoveries made by TG Metals and Charger Metals. The transaction with IEC will now allow the Project to be taken to the next level and Global Uranium and its shareholders to benefit from any future exploration success.
The critical need and role of nuclear energy as a leading clean energy source is growing every day and as an advanced uranium developer, we are focused on building our portfolio in size and scale and establishing the company as a key North American uranium producer.”
Write to Adam Orlando at Mining.com.au
Images: Global Uranium and Enrichment
