Myriad Uranium (CSE:M) has entered into a definitive merger agreement to acquire Rush Rare Metals (CSE:RSH).
Under the merger, Myriad will issue one share for every 1.85 Rush shares held, resulting in an exchange ratio of one Rush share to every 0.5405 Myriad shares.
The merger is subject to various conditions including shareholder and the Canadian Securities Exchange (CSE) approval, as well as approval of the British Columbia Supreme Court. Following completion, Rush will become a wholly owned subsidiary of Myriad and will be delisted from the CSE.
Myriad CEO Thomas Lamb says unifying 100% ownership of the Copper Mountain Uranium Project is a clear value catalyst.
“Copper Mountain is viewed by a number of sector commentators as a call option on US uranium because of its scale, location, and exceptional history,” Lamb says.
“In the 1970s, Union Pacific and Southern California Edison invested roughly US$125 million ($129.9 million) in today’s dollars, identified multiple deposits, and advanced plans for a large conventional uranium mine before development was halted by the Three Mile Island incident.
“This historical investment and results strongly support Copper Mountain’s potential as a large-scale, strategic, domestic source of uranium.”
Rush CEO Pete Smith adds that as the company has added historical data, and supplemented it with new drilling and geophysical data, the size and potential of Copper Mountain has grown.
“Arrowhead, Canning, Mint/Allard, Midnight, Bonanza Trend, Steffen Hill, Knob, Railroad, Kermac/Day, Cedar Ridge and many more, all genuine uranium prospects of significant size and all based on real work, in some cases extensive work including historical drilling,” Smith says.
“Myriad risked time and money playing this all out, and it certainly appears to be paying off rather dramatically. We expect the success story at Copper Mountain to continue, and we are thrilled to have investments by both Rush and Myriad shareholders combined and in great hands going forward.”
Myriad Uranium is a uranium explorer which currently holds 75% in the Copper Mountain Project in Wyoming, US. The project hosts several known uranium deposits and historical mines including the Arrowhead Mine which produced 500,000 pounds of triuranium octoxide in the 1970s.
Write to Aaliyah Rogan at Mining.com.au
Images: Myriad Uranium
