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Closing of sale of interest in the Wate Uranium Project
Rose Petroleum plc, the AIM-listed (LSE:ROSE) natural resources company, has said that their wholly owned subsidiary VANE Minerals (US) LLC has now closed the transaction to sell its 50% interest in the Wate breccia pipe uranium project for an increased total sale price of US$1.75 million (from US$1.5 million), further details of which were announced on 2 January 2015 and 3 February 2015.
The sale was to EFR Arizona Strip LLC, a subsidiary of Energy Fuels Inc. A revised Purchase and Sale Agreement has been signed, which replaced the original agreement and an initial payment of US$250,000 has been received.
Highlights of the revised transaction:
ยท Total increased sale price of US$1.75 million (from US$1.5m) consisting of:
o US$250,000 cash already received;
o US$250,000 cash on 13 February 2016;
o US$250,000 cash on 13 February 2017;
o US$250,000 conditional cash; and
o 2% production royalty capped at US$750,000.
As consideration for the 50% interest in the Wate project, Energy Fuels paid US$250,000 cash to VANE at closing, along with a US$500,000 non-interest-bearing promissory note, payable in two equal instalments of US$250,000 on each of the first and second anniversaries of the closing, and a 2% production royalty on EFR’s stake in the project. The royalty can be purchased by EFR upon payment to VANE of an additional US$750,000, less any royalties previously paid. In addition, upon the meeting of certain regulatory milestones, the deferred payments due under the note will be accelerated and, in addition, EFR will pay an additional US$250,000 cash to VANE.
Matthew Idiens, CEO, commented, “I am pleased that we have now finalised this transaction, having negotiated a new overall sales price which represents more than a 16% increase from the original agreed price. The proceeds will be used for working capital and further exploration expenditures across both our mining and oil & gas divisions.”
