Consolidated Uranium Inc. (“
CUR”, the
“
Company” or “
Consolidated
Uranium”) (TSXV: CUR) (OTCQB: CURUF) is pleased
to announce that it has closed the previously announced acquisition
(the “
Acquisition”) of a 100% undivided interest
in the high-grade Matoush Uranium Project
(“
Matoush” or the “
Property”)
located in the Province of Quebec, Canada.
Key Points:
- High-Grade and Substantial
Historic Resources – Based on a press release issued by
Strateco Resources Inc. (“Strateco”) on December
7, 2012, Matoush was considered to have the following historical
Mineral Resources:
- Indicated Mineral Resources of
586,000 t at an average grade of 0.954% containing 12.329 m lbs of
U3O8
- Inferred Mineral Resources of
1,686,000 t at an average grade of 0.442% containing 16.44 m lbs of
U3O8
- This historical estimate is
considered to be a “historical estimate” under National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI
43-101”) and is not considered by the Company to be
current. See below under the heading “Global Historical Mineral
Resource Table”.
- Advanced Stage
Project – An Updated Preliminary Economic Assessment on
the Property was published in April of 2010 which contemplated
access via a ramp decline, mining using longhole methods followed
by cemented rock fill (CRF).
- Good Exploration
Potential – The Matoush Fault Zone, the structure that
controls the mineralization, has been identified over a strike
length extending 11km southward and 5km northward beyond the
historic resource area. In addition, many of the zones of
mineralization within the historic Mineral Resources are open along
strike and down plunge.
- Proven Mining Jurisdiction
with Uranium Endowment - Quebec ranks highly as a mining
jurisdiction and has seen significant past expenditures on uranium
exploration by both major and junior mining companies.
- Compelling Acquisition
Structure – Deferred cash and share based consideration
offers potential to reduce the ultimate total purchase price equity
dilution.
Philip Williams, CEO commented “We are very
pleased to close this acquisition which adds another high-grade,
advanced stage project, in a top ranked mining jurisdiction, to our
global project portfolio. As highlighted when we initially
announced the acquisition, we look forward to bringing a fresh
perspective to development of the project with a focus on
engagement with the local indigenous stakeholders before
undertaking any project level activity. Our recently announced
acquisition and strategic alliance with Energy Fuels partners us
with a leading US uranium miner that boasts an exemplary track
record of safe uranium mining and milling that we expect will serve
as a model for the potential advancement of the Matoush
project.”
Terms of the Share Purchase
Agreement
In accordance with the terms of the share
pursuant agreement entered into with respect to the Acquisition
(the “Agreement”), CUR has acquired all of the
shares of a special purpose vehicle (the “SPV”)
that holds a 100% undivided interest in the Property. The SPV,
which was an indirect wholly-owned subsidiary of certain funds
managed or advised by Third Eye Capital Corporation or its
affiliates, acquired the Property free and clear of any
encumbrances pursuant to an approval and vesting order granted by
the Quebec Superior Court dated April 30, 2021.
As upfront payment for the Property, the Company
has paid consideration comprised of $3,500,000 in cash and issued
2,000,000 common shares in the capital of the Company
(“Shares”) with an aggregate value of $3,700,000
at a deemed price of $1.85 per Share which was calculated based on
the 20-day VWAP of the Shares on the TSX Venture Exchange (the
“TSXV”) up to August 17, 2021. Pursuant to the
Agreement, further deferred payment is due on or before the
six-month anniversary of closing of the transaction comprised of
$1,500,000 in cash and such number of Shares with a value of
$2,000,000 at a price per Share based on the 20-day VWAP of the
Shares on the TSXV up to the date prior to the deferred payment.
Following the issuance of the Shares pursuant to the Acquisition,
the Company now has 46,481,387 Shares issued and outstanding.
All securities issued in connection with the
Acquisition are subject to final approval of the TSXV and a hold
period expiring four months and one day from the date of
issuance.
Historic Mineral Resources
Roscoe Postle Associates Inc.
(“RPA”), an independent consulting company,
prepared a technical report on the Property in accordance with the
disclosure standards of NI 43-101 entitled “Technical Report on the
Mineral Resource Update for the Matoush Project, Central Québec,
Canada” dated February 12, 2012. The Mineral Resource estimate was
further updated by RPA in December 2012, as disclosed in a press
release of Strateco dated December 7, 2012 (the “Historic
Estimate”) and is considered to be a “historical estimate”
under NI 43-101 and is not considered by the Company to be current.
See below under the heading “Technical Disclosure and Qualified
Person”.
The Historic Estimate was reported to be
contained within six zones: AM-15, MT-22, MT-34, MT-02, MT-06, and
MT-36 as shown in the following table.
Category |
Tonnes (000 t) |
Grade U3O8
(%) |
Contained U3O8 (m
lbs) |
Indicated |
|
|
|
AM-15 |
269 |
0.710 |
4,205 |
MT-22 |
73 |
1.160 |
1,866 |
MT-34 |
245 |
1.160 |
6,257 |
Total Indicated |
586 |
0.954 |
12,329 |
|
|
|
|
Inferred |
|
|
|
AM-15 |
95 |
0.217 |
456 |
MT-02 |
69 |
0.270 |
413 |
MT-06 |
195 |
0.181 |
777 |
MT-22 |
717 |
0.539 |
8,517 |
MT-34 |
414 |
0.564 |
5,148 |
MT-36 |
196 |
0.262 |
1,127 |
Total Inferred |
1,686 |
0.442 |
16,440 |
Notes:1. CIM definitions were followed for the
Historic Estimate.2. The Historic Estimate was estimated at a
cut-off grade of 0.1% U3O8.3. The Historic Estimate was estimated
using an average long-term uranium price of US$75 per pound.4. A
minimum mining width of 1.5 m was used.5. The MT34A lens is within
both the MT-34 and AM-15 zones.6. Numbers may not add due to
rounding.
Technical
Disclosure and Qualified Person
The scientific and technical information
contained in this news release was reviewed and supervised by Peter
Mullens (FAusIMM), CUR’s VP Business Development, who is a
“Qualified Person” (as defined in NI 43-101).
The Historic Estimate was prepared by RPA using
block U3O8 grades within a wireframe model that were estimated by
ordinary kriging. The Historic Estimate was estimated at a cut-off
grade of 0.1% U3O8 and using an average long-term uranium price of
US$75 per pound. Six zones make up the Historical Estimate at
Matoush: AM-15, MT-34, MT-22, MT-02, MT-06, and MT-36. Each zone is
made up of one or more lenses, most of which strike north (009°)
and dip steeply (87°) to the east. Outlines of the mineralized
lenses were interpreted on ten-metre spaced vertical sections.
Minimum criteria of 0.10% U3O8 over 1.5 m true thickness was used
as a guide. The Company would need to conduct an exploration
program, including twinning of historical drill holes in order to
verify the Historical Estimate as a current Mineral Resource.
About Consolidated Uranium
Inc.
Consolidated Uranium Inc. (TSXV: CUR) (OTCQB:
CURUF) was created in early 2020 to capitalize on an anticipated
uranium market resurgence using the proven model of diversified
project consolidation. To date, the company has acquired or has the
right to acquire uranium projects in Australia, Canada, Argentina
and the United States each with significant past expenditures and
attractive characteristics for development. Most recently, the
Company entered a transformational strategic acquisition agreement
and alliance with Energy Fuels Inc (NYSE American: UUUU) (TSX:
EFR), a leading U.S.-based uranium mining company, to acquire a
portfolio of permitted, past-producing conventional uranium and
vanadium mines in the Utah and Colorado. These mines are currently
on stand-by, ready for rapid restart as market conditions permit,
positioning CUR as a near-term uranium producer.
Philip Williams
President and CEO+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 the final approval of the
TSXV and other activities, events or developments that the Company
expects or anticipates will or may occur in the future. 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.
Consolidated Uranium (TSXV:CUR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Consolidated Uranium (TSXV:CUR)
Historical Stock Chart
From Apr 2023 to Apr 2024