The Conversation (0)
Uranium Resources (NASDAQ:URRE) has announced that it has executed a letter of intent to execute its share purchase agreement with Laramide Resources (TSX:LA) whereby URI is selling its Churchrock and Crownpoint projects. As quoted in the press release: The LOI sets the closing date for December 22, 2016 and amends certain other terms and conditions, …
Uranium Resources (NASDAQ:URRE) has announced that it has executed a letter of intent to execute its share purchase agreement with Laramide Resources (TSX:LA) whereby URI is selling its Churchrock and Crownpoint projects.
As quoted in the press release:
The LOI sets the closing date for December 22, 2016 and amends certain other terms and conditions, including removal of the condition that Laramide have completed a financing before closing. The LOI is non-binding but contemplates that the parties will negotiate and enter into a binding amendment to the Agreement not later than December 9, 2016.
URI and Laramide have agreed to maintain the value of the transaction at $12.5 million but to reduce the cash to be paid and the amount of the promissory note to be issued at closing, in exchange for equity, a royalty and an additional option. Under the amended Agreement, at closing Laramide will acquire Churchrock and Crownpoint for $2.5 million in cash, will issue shares of its common stock and warrants to URI valued at $500,000, will issue URI a 3-year promissory note in the amount of $5 million and will grant URI a 4% net smelter royalty valued at $4.5 million on Churchrock. In addition, Laramide has reduced the price for URI’s option to purchase Laramide’s La Sal project to $3 million and will provide a new option for URI to purchase Laramide’s La Jara Mesa project for $5 million.