Mega Uranium Ltd. Signs Agreement to Sell Labrador Property
November 04 2021 - 7:00AM
Mega Uranium Ltd. (MGA: TSX) (“
Mega” or the
“
Company”) announces that it has entered into an
agreement to sell its interest in the Mustang Lake uranium
property, located in Labrador, Canada, to Labrador Uranium Inc.
(“
LUR”), a subsidiary of Consolidated Uranium Inc.
(“
CUR”). Mega has a 66% interest in the property
(the “
Interest”), which is the subject matter of
its joint venture with Anthem Resources Inc.
Under the terms of the agreement, Mega will
receive 3 million common shares of LUR in exchange for the Interest
and have the right to appoint one nominee to LUR’s board of
directors on closing. Closing of the sale is subject to various
conditions, including the completion of the proposed spin-out of
CUR’s interest in LUR to CUR’s shareholders and the listing of
LUR’s shares on a Canadian stock exchange (publicly-announced by
CUR on October 18, 2021), and the waiver of Anthem’s right of first
refusal in respect of the Interest. If the spin-out and listing are
not completed prior to November 3, 2022, CUR will have, under
certain circumstances, a thirty-day option to purchase the Interest
for $1 million, payable in common shares of CUR.
The proposed sale of the Interest represents
another opportunity for Mega to monetize long-held capital
intensive assets and expand its investment portfolio of
uranium-based issuers, which includes equity positions in NexGen
Energy Ltd., Toro Energy Limited, Uranium Royalty Corporation, CUR,
U308 Corp. and Virginia Energy Resources Inc.
ABOUT MEGA URANIUM LTD.Mega
Uranium Ltd. is a Toronto-based mineral resources company with a
focus on uranium properties in Australia and Canada and a portfolio
of equity investments in uranium-focused companies. Further
information on Mega can be found on the company’s website at
www.megauranium.com.
For further information please contact:
Mega Uranium Ltd.Richard PatricioChief Executive Officer and
PresidentT: (416)
643-7630info@megauranium.comwww.megauranium.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
This press release contains forward-looking
information based on current expectations in connection with the
proposed sale (the “Transaction”), including events which are
proposed to occur under the terms of the agreement. Forward-looking
information is often, but not always, identified by the use of the
words “contemplate”, “estimate”, “expect” and “anticipate” and
statements that an event or result “may”, “will”, “should”, “could”
or “might” occur and any similar expressions or negative variations
thereof.
In providing forward-looking information in this
press release, we have made numerous assumptions regarding the
Transaction, which we believe to be reasonable, including
assumptions relating to the satisfaction of conditions to the
Transaction and the expected actions of third parties.
Forward-looking information entails various risks and uncertainties
however that could cause actual results to differ materially from
those reflected in the forward-looking information. Specific risks
that could cause actual results to differ materially from those
anticipated or disclosed in this press release include, but are not
limited to, failure to satisfy the conditions to complete the
Transaction, including failure to receive required approvals or
obtain the waiver of the right of first refusal, and the delay of
completion or failure to complete the Transaction for any other
reason. General risks relating to capital markets, economic
conditions, and regulatory changes may also cause actual results to
differ materially from those anticipated or disclosed in this press
release. Forward-looking information are not guarantees of future
performance, and management’s assumptions upon which such
forward-looking information are based may prove to be
incorrect.
Accordingly, there can be no assurance that
actual events or results will be consistent with the
forward-looking information disclosed herein. In light of the
significant uncertainties inherent in forward-looking information,
any such forward-looking information should not be regarded as
representations by us that our objectives or plans relating to the
rights offering or standby commitment or otherwise will be
achieved. Investors are cautioned not to place undue reliance on
any forward-looking information contained herein and that such
forward-looking information are provided solely for the purpose of
providing information about our current expectations and plans
relating to the future. Readers are cautioned that such information
may not be appropriate for other purposes. In addition,
forward-looking information relates to the date on which they are
made.
We disclaim any intention or obligation to
update or revise any forward-looking information contained in this
press release, whether as a result of new information, future
events or otherwise, except to the extent required by law.
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