SYDNEY, AUSTRALIA: Global Uranium and Enrichment Limited (ASX:GUE) has entered into a binding agreement to dispose 80% of its interest in the Lake Johnston Project (E63/2039) to lntra Energy Corporation Limited (ASX: IEC).
The total consideration under the Sale Agreement is up to $2.125 million which includes a cash consideration of $175,000 and the issue of 30 million IEC shares at completion of the sale.
The remaining deferred consideration will be issued in shares or paid in cash subject to certain milestones being achieved. Global Uranium and Enrichment will retain a 20% interest in the Lake Johnston Project and will also be granted a 1.0% gross revenue royalty by IEC, payable on product extracted, mined and sold from the Lake Johnston Project.
Global Uranium and Enrichment intends on using the initial cash consideration of $175,000 towards ongoing exploration and development of its North American Uranium assets.
Global Uranium’s Managing Director, Mr Andrew Ferrier said: “This is an excellent transaction for Global Uranium and our shareholders, as we can continue to focus on developing our advanced, high-quality, North American uranium portfolio, while maintaining upside exposure to the Lake Johnston Project.
“Lake Johnston is an exciting asset, located in a proven lithium region which has been highlighted by recent discoveries made by TG Metals and Charger Metals. The transaction with IEC will now allow the Project to be taken to the next level and Global Uranium and its shareholders to benefit from any future exploration success.
“The critical need and role of nuclear energy as a leading clean energy source is growing every day and as on advanced uranium developer, we are focused on building our portfolio in size and scale and establishing the Company as a key North American uranium producer.”
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