Consolidated Uranium Inc. (“CUR”, the “Company” or “Consolidated Uranium”) (TSXV: CUR) (OTCQB: CURUF) is pleased to provide the following update on the option agreement (the “Option Agreement”) with IsoEnergy Ltd. (“IsoEnergy”) (TSXV: ISO) that was originally announced on July 16, 2020, providing CUR with the option to acquire a 100% undivided interest in the Mountain Lake uranium project (“Mountain Lake” or the “Property”) located in Nunavut, Canada.
Following receipt of shareholder approval of the Option Agreement at the Company’s annual and special meeting of shareholders held on June 29, 2021, the TSXV Venture Exchange (“TSXV”) conditionally approved the Option Agreement which has become effective as of August 3, 2021. As a result of the Option Agreement having been made effective and in accordance with the terms thereof, CUR will deliver initial consideration to IsoEnergy comprised of (i) 900,000 common shares in the capital of the Company (the “Common Shares”) at a deemed price of $1.99 per share (being the five-day volume weighted average price (“VWAP”) of the Common Shares up to July 29, 2021, the second last trading day immediately prior to the effective date of the Option Agreement), and (ii) a cash payment of $20,000.
Terms of the Option Agreement
Under the terms of the Option Agreement, the option is exercisable at the Company’s election on or before the second anniversary of the effective date of the Option Agreement, upon payment of $1,000,000 payable in cash or Common Shares at a price per share equal to the five-day VWAP of the Common Shares up to the second last trading day prior to the exercise date of the option and reimbursement of certain expenditures incurred by IsoEnergy on the Property. If the Company elects to exercise its option acquire the Property, IsoEnergy will also be entitled to receive the following contingent payments (the “Contingent Payments”), payable in cash or Common Shares at the election of CUR:
• If the uranium spot price reaches USD$50, IsoEnergy will receive a one-time payment of $410,000;
• If the uranium spot price reaches USD$75, IsoEnergy will receive a one-time payment of $615,000; and
• If the uranium spot price reaches USD$100, IsoEnergy will receive a one-time payment of $820,000.
The obligation of CUR to make the Contingent Payments will expire 10 years following the date the option is exercised. In the event that the first Contingency Payment has been paid by CUR upon the uranium spot price reaching USD$50, IsoEnergy will have the one-time option to elect to receive $205,000 in lieu of, and not in addition to, each of the second and the third Contingent Payments for a total aggregate amount of $410,000. If elected by IsoEnergy, such $410,000 will be payable at CUR’s option in cash or Common Shares at a price per share equal to the five-day VWAP of the Common Shares up to the second last trading day prior to the dated that CUR receives notice of the election by IsoEnergy.
All securities issued in connection with the Option Agreement are subject to final approval of the TSXV and will be subject to a hold period expiring four months and one day from the applicable date of issuance.
About Consolidated Uranium Inc.
Consolidated Uranium Inc. (TSXV: CUR) (OTCQB: CURUF) was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, the company has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina and the United States each with significant past expenditures and attractive characteristics for development. Most recently, the Company entered a transformational strategic acquisition agreement and alliance with Energy Fuels Inc (NYSE American: UUUU) (TSX: EFR), a leading U.S.-based uranium mining company, to acquire a portfolio of permitted, past-producing conventional uranium and vanadium mines in the Utah and Colorado. These mines are currently on stand-by, ready for rapid restart as market conditions permit, positioning CUR as a near-term uranium producer.
www.ferroalloynet.com
