International Consolidated Uranium Inc. (“
CUR” or
the “
Company”) (TSXV: CUR) is pleased to provide
the following updates on the option agreement (the “
Option
Agreement”) with U3O8 Corp. (“
U308”)
(TSXV: UWE.H) that was previously announced on December 14,
2020, providing CUR with the option to acquire a 100%
undivided interest in the Laguna Salada project (“
Laguna
Salada” or the “
Property”) located in
Chubut Province, Argentina.
Following receipt of conditional approval of the
TSXV Venture Exchange (“TSXV”), the Option
Agreement has become effective as of June 11, 2021. As a result of
the Option Agreement having been made effective, CUR will deliver
consideration to U308 comprised of (i) $125,000 to be satisfied by
the issuance of 56,306 common shares in the capital of the Company
(the “Common Shares”), at a deemed price of $2.22
per share (based on the 5-Day VWAP of the Common Shares up to June
9, 2021, being the second business day prior to the Option
Agreement being made effective), and (ii) a cash payment of
$225,000, of which $50,000 is to be utilized for expenditures on
the Property.
In addition, CUR has provided notice to U308 of
its exercise of the option to acquire the Property, for
consideration of $1,500,000 to be satisfied by the issuance of
675,675 Common Shares, at a deemed price of $2.22 per share based
on the 5-Day VWAP of the Common Shares up to June 9, 2021, being
the second business day prior to the option being exercised). Upon
issuance, it is anticipated that the 675,675 Common Shares will be
held in escrow pending closing of the acquisition. In addition, as
a result of the exercise of the option, U308 will be entitled to
receive certain future payments contingent upon the attainment of
certain milestones tied to the spot price of uranium, as described
in the Company’s press release dated December 14, 2020.
Philip Williams, President and CEO commented
“Exercising the Laguna Salada option is a logical next step for the
Company given the improving market interest in the uranium sector.
Our strategy when entering the Option Agreement, as well as our
other option agreements, was to exercise when we were confident
that the value to be derived by the Company in owning the project
outright would be greater than the cost of acquisition. We believe
that time is now and, given our outlook for uranium prices, as well
as the exploration and development potential we see at Laguna
Salada, we see this as a great opportunity to enhance value for CUR
shareholders”.
Closing of the acquisition remains subject to
satisfaction of certain closing conditions customary for a
transaction of this nature. All securities issued in connection
with the Option Agreement are subject to final approval of the TSXV
and will be subject to a hold period expiring four months and one
day from the applicable date of issuance.
About International Consolidated
Uranium
International Consolidated Uranium Inc. (TSXV:
CUR) is well financed to execute its strategy of consolidating and
advancing uranium projects around the globe. The Company has
acquired a 100% interest or has entered into option agreements to
acquire a 100% interest in seven uranium projects, in Australia,
Canada, and Argentina, each with significant past expenditures and
attractive characteristics for development. CUR has entered into
option agreements with Mega Uranium Ltd. (TSX: MGA) to acquire a
100% interest in the Ben Lomond and Georgetown uranium projects in
Australia; with IsoEnergy Ltd. (TSXV: ISO) to acquire a 100%
interest in the Mountain Lake uranium project in Nunavut, Canada;
with a private individual to acquire a 100% interest in the Moran
Lake uranium and vanadium project in Labrador, Canada; and with
U3O8 Corp. (TSXV: UWE.H) to acquire a 100% interest in the Laguna
Salada uranium and vanadium project in Argentina. CUR has also
acquired a 100% interest in the Dieter Lake uranium project and
entered into an agreement to acquire a 100% interest in the Matoush
uranium project, both in Quebec, Canada. The option agreement with
IsoEnergy for Mountain Lake and the option agreement with U3O8
Corp. for Laguna Salada both remain subject to regulatory
approval.
Philip Williams
President and CEOInternational Consolidated
Uranium Inc. +1 778 383 3057pwilliams@consolidateduranium.com
Neither TSX Venture Exchange nor its Regulations
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding
“Forward-Looking” Information
This news release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. “Forward-looking information” includes, but is not
limited to, statements with respect to activities, events or
developments that the Company expects or anticipates will or may
occur in the future, closing of the acquisition of the Property,
the value to be derived from the Property and other projects over
which the Company holds an option; satisfaction of the conditions
to closing of the acquisition including final approval of the TSXV,
the Company’s outlook on uranium prices and market interest in the
uranium sector. Generally, but not always, forward-looking
information and statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or the negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will be taken”, “occur” or “be
achieved” or the negative connotation thereof. Such forward-looking
information and statements are based on numerous assumptions,
including that general business and economic conditions will not
change in a material adverse manner, that financing will be
available if and when needed and on reasonable terms, and that
third party contractors, equipment and supplies and governmental
and other approvals required to conduct the Company’s planned
exploration activities will be available on reasonable terms and in
a timely manner. Although the assumptions made by the Company in
providing forward-looking information or making forward-looking
statements are considered reasonable by management at the time,
there can be no assurance that such assumptions will prove to be
accurate.
Forward-looking information and statements also
involve known and unknown risks and uncertainties and other
factors, which may cause actual events or results in future periods
to differ materially from any projections of future events or
results expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in the forward-looking information
or implied by forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking
information and statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated, estimated or intended. Accordingly, readers should not
place undue reliance on forward-looking statements or information.
The Company undertakes no obligation to update or reissue
forward-looking information as a result of new information or
events except as required by applicable securities laws.
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