Laramide Resources Ltd. (TSX:LAM,ASX:LAM) announced that it has made its anniversary payment to Westwater Resources Inc. (NASDAQ:WWR) for the acquisition of the Church Rock and Crownpoint uranium projects.
The company also provided an updated on activities at both projects.
As quoted in the press release:
The US$1.5 million payment (the “Payment”) consisted of a US$750,000 cash payment and the issuance of 1,982,483 common shares based on the volume weighted average price (“VWAP”) of Laramide’s common shares for the 20 days before the anniversary date of the Acquisition, which was C$0.4724 per share. The common shares issued pursuant to the Payment are subject to a statutory four-month hold period expiring on May 13, 2018. The Payment reduced the outstanding promissory note (the “Note”) to the principal amount of US$3.5 million, with two remaining payments, due in January 2019 (US$1.5 million), and January 2020(US$2.0 million). Pursuant to the Note, Laramide has the right to elect to repay up to 50% of the outstanding principal under the Note in the form of common shares of Laramide issued at a price equal to the 20-day VWAP at the time of such payment.
Pursuant to the terms of the Acquisition, Westwater was granted a one-year option to acquire Laramide’s La Saluranium project in Utah and La Jara Mesa in New Mexico for US$3 million and US$5 million, respectively (the “Option”). Laramide received notification by Westwater that they have elected not to exercise and the Option has expired.