Laramide Resources to Acquire Two New Mexico ISR Uranium Projects

Laramide Resources (TSX:LAM,ASX:LAM) announced a definitive share purchase agreement with Uranium Resources (NASDAQ:URRE), whereby it will purchase the company’s subsidiary, Hydro Resources, which owns the Churchrock and Crownpoint ISR uranium properties in New Mexico.
As quoted in the press release:

Churchrock and Crownpoint are the principal properties within an advanced stage portfolio of high-quality In Situ Recovery (“ISR”) projects which have near-term development potential and significant mineral resources. 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 Transaction provides both companies with an opportunity to realise value from these assets and provide Laramide with a low cost production opportunity in a tier one jurisdiction.
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 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 forUS$4M, the proceeds which would reduce the amount owed of the Note. The initial cash payment of  US$5.25 million is due on closing (the “Cash Payment”). Further terms related to the consideration to be paid by Laramide and the Transaction were summarized in the November 10, 2015 press release.

Click here for the full press release.