Laramide Resources (TSX:LAM,ASX:LAM) announced that it has entered into a binding letter of intent to acquire Uranium Resources’ advanced-stage portfolio of ISR projects in New Mexico.

Laramide Resources (TSX:LAM,ASX:LAM) announced that it has entered into a binding letter of intent to acquire Uranium Resources’ advanced-stage portfolio of ISR projects in New Mexico.
As quoted in the press release:

The properties are principally comprised of the Church Rock and Crownpoint projects, in addition to nearby assets, which have near-term development potential and significant mineral resources. The properties are located within a large land package in the heart of the Grants Mining District in McKinley County, New Mexico, one of the most historically significant uranium-producing districts in the U.S.
These projects have been previously burdened by significant net smelter royalties, specifically the sliding scale royalty, held by Laramide of up to 25% of gross revenue covering certain areas of the properties. The combination of Laramide’s New Mexicouranium royalty portfolio and these projects is synergistic and creates an ISR division operating in a tier one jurisdiction with significantly enhanced overall project economics.
Total consideration to be paid by Laramide to URI is US$12.5 million, over a three-year period, from the anniversary of closing. The targeted closing date of the Proposed Transaction is March 31, 2016 (the “Closing”). The consideration will include a combination of cash, shares, a promissory note (the “Note”), and an option for URI to acquire Laramide’s La Sal project in Utah for US$4M, which would reduce the amount owed of the Note. Further terms related to the consideration to be paid by Laramide are summarized below in this press release.

Marc Henderson, president and CEO of Laramide, commented:

We are pleased to introduce the Church Rock and Crownpoint group of properties as a new cornerstone asset cementing our strategy of developing low-cost uranium assets in tier one jurisdictions.Church Rock complements our flagship asset in Australia, Westmoreland, and our conventional hard rock projects in New Mexico and Utah, being a near term development asset.

Click here to read the full Laramide Resources (TSX:LAM,ASX:LAM) press release.