The Conversation (0)
Anfield Resources Inc. (TSXV:ARY) announced that it has entered into an agreement with Uranium One Inc. to extend the closing date for the acquisition of the Shootaring Canyon Mill and a portfolio of uranium assets from Uranium One for up to another 90 days. The transaction, which was initiated on August 18, 2014, was originally set to close March 31, but has now been extended to June 30.
As quoted in the press release:
In addition, Anfield announces that it is working with a surety bond provider to replace the long-term government reclamation bonds that are currently in place over the Shootaring Canyon Mill. Anfield expects that the surety bond will be provided with a collateral reduction of 25 percent of the total reclamation bond with an annual premium of 3 percent of the bond value. Within twenty four months following closing, the Company will make an additional deposit to cover the remaining amount of the reclamation bonds.
Upon the closing of the Transaction, the Shootaring Mill in Garfield County, Utah will be added to Anfield’s portfolio of assets. The Shootaring Mill is strategically located within one of the historically most prolific uranium production areas in the United States, and is one of only three licensed uranium mills in the United States.
Upon the closing of the Transaction, Anfield’s uranium assets will consist of mining claims and state leases in southeastern Utah, Colorado, South Dakota and Arizona totalling nearly 65,500 acres (26,507 hectares), targeting areas where past uranium mining or prospecting occurred. Upon the closing of the Shootaring Transaction, Anfield’s uranium assets will include the Velvet-Wood Deposit, containing a measured and indicated resource of 4.6 million pounds U3O8 at an average grade of 0.29 percent (Velvet-Wood Uranium Project, 43-101 Mineral Resource Report, Garfield County, Utah USA dated 14-November-2014, prepared by BRS, Inc.), as well as additional deposits containing a historical measured and indicated U3O8 resource estimate of 2.2 million pounds, all situated within a 125-mile radius of the Shootaring Mill. The tonnages, grades and sources of the 2.2 million pound historic resources referred to above is the Frank M Uranium Project with an indicated resource of 1,095,000 indicated tonnes at 0.101 percent U3O8 for 2,210,000 pounds.
Anfield has achieved significant milestones towards closing including the following:
- Obtained conditional approval from the Utah Division of Radiation Control for transfer of the Shootaring Mill radioactive materials license and accompanying groundwater discharge permit
- Obtained conditional approval from the TSX Venture Exchange for the transaction to proceed
- Obtained approval from the Committee on Foreign Investment in the United States for the transaction to proceed
- Obtained approval from the Federal Communications Commission for transfer of the radio communications license
- Completed a National Instrument 43-101 resource report for the Velvet-Wood project in anticipation of the transfer
- Commenced a Preliminary Economic Assessment report for the Velvet-Wood project in anticipation of the transfer
- Received commitment to replace long-term government reclamation bonds at a collateral reduction of 25 percent
Corey Dias, CEO of Anfield, commented:
We are committed to closing the Transaction, as demonstrated by the significant effort we have expended as we have successfully navigated the various regulatory hurdles required to consummate the Transaction. We feel that the 90-day extension will allow us to better leverage our position as we seek significant funding sources in the future. Additionally, we are pleased to be working to secure a surety arrangement with a cash collateral reduction, which significantly reduces the amount that Anfield will need to provide to close the Transaction.
Click here to read the Anfield Resources Inc. (TSXV:ARY) press release
Click here to see the Anfield Resources Inc. (TSXV:ARY) profile.