Laramide Resources Closes Churchrock and Crownpoint Acquisition

Laramide Resources (TSX:LAM) has announced that it has closed the acquisition of the Churchrock and Crownpoint properties in New Mexico from Uranium Resources (NASDAQ:URRE).
As quoted in the press release:

The Projects are principally comprised of the 100% owned Churchrock and Crownpoint projects which have near-term development potential and significant mineral resources. They are located within a large land package in the heart of the Grants Mining District inMcKinley County, New Mexico, one of the most historically significant uranium-producing districts in the U.S.
The Projects are subject to net smelter royalties, specifically the sliding scale royalty, owned by Laramide of up to 25% of gross revenue covering certain areas of the Projects which made them less economical. In addition, other key properties included in the acquisition were recently consolidated by URI.  Therefore, following the acquisition by Laramide a leading In Situ Recovery (“ISR”) division is created operating in a tier one jurisdiction with enhanced overall project economics and potential low operating costs.
Total consideration paid by Laramide to URI consisted of US$2.5 million in cash ($250,000 of which was previously paid), the issuance by Laramide to URI of 2,218,333 units (“Units”), a promissory note in the amount of US$5.0 million with three anniversary payments due on January 5, 2018 (US$1.5 million), 2019 (US$1.5 million), and 2020 (US$2.0 million), and a retained net smelter royalty on the Projects valued at US$4.5 million.  The transaction took over a year to complete and includes the approval from the U.S. Nuclear Regulatory Commission to transfer materials licenses for the properties to Laramide.

Click here to read the full press release.