Uranium Energy Corp (NYSE American:UEC) announced that they have closed a definitive property purchase agreement with Nuinsco Resources Limited to acquire 100 percent of the Diabase project located on the south rim of the Athabasca Basin in Saskatchewan, Canada.
Highlights are as follows:
- Total consideration for the acquisition is approximately $500,000 comprised of $240,000 in cash and 164,767 shares (at a deemed issuance price of $1.60 per common share).
- The property has seen in excess of US$ 20 million in historical exploration work, including over 21,000 meters of diamond drilling, geophysical surveying and surficial sampling data.
- The Project delivers a significant land package of 21,949 hectares, which overlies a highly prospective regional corridor within 75 km of Cameco’s Key Lake mill in a stable and leading jurisdiction for uranium exploration and mining.
- Efficient acquisition that preserves balance sheet flexibility in the bottom of the uranium cycle at less than 0.1% dilution to current UEC shareholders.
Clyde Yancey, vice president, exploration, commented:
Our acquisition strategy focuses on low cost, high value projects, the Diabase project is consistent with those objectives and UEC gains an opportunistic foothold in the Athabasca Basin. The project is an excellent addition to our pipeline of exploration properties for future development in a premier uranium district. We are also pleased to welcome Darcy Hirsekorn and his two decades of Athabasca Basin exploration experience to the Company’s geological team.