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Crosshair Exploration & Mining Corp. (TSE:CXX,AMEX:CXZ) reports on the Board of Australian American Mining Corporation Limited (ASX:AIW) to engage in good faith negotiations with its proposal to acquire certain AusAm assets.
Crosshair Exploration & Mining Corp. (TSX:CXX,AMEX:CXZ) reports on the Board of Australian American Mining Corporation Limited (ASX:AIW) to engage in good faith negotiations with its proposal to acquire certain AusAm assets.
The press release is quoted as saying:
Crosshair has proposed a direct equity payment of US$12.85 million worth of Crosshair shares in exchange for AusAm’s United States uranium assets, namely the Apex/Lowboy Project, Lone Star Project and Rio Puerco Project (the “U.S. Uranium Assets“). Crosshair would then be responsible for progressing development of the US Uranium Assets and enhancing their future value.
Crosshair’s Executive Chairman, Mark Morabito says:
“AusAm’s engagement to date has been through its solicitors and has not been in good faith. The demands put forward are a delaying tactic in our view.”
“Everyone will win if Crosshair is able to provide a significant premium to AusAm shareholders, and then unlock the value of the US Uranium assets. Crosshair has a local presence and proven project management skills, which puts it in a good position to fast-track the development of these valuable assets.”
“Under our proposal AusAm will receive valuable Crosshair shares. AusAm may elect to distribute the Crosshair shares to AusAm shareholders or it may elect to continue to hold a significant stake in Crosshair – either way AusAm shareholders will be exposed to the upside associated with an interest in Crosshair. So a ‘win-win’ for everyone is highly probable, indeed, it is the only way this will proceed. That is why we need the Board of AusAm to engage in discussions.”
Click here to access the entire news release.
