JOHANNESBURG (miningweekly.com) – Australia-based mining company Ram Resources has entered into a heads of agreement with TSX-listed uranium explorer Macusani Yellowcake, to sell its Corachapi and Kihitian uranium projects, in Peru, for C$500 000.

A deposit of C$25 000 was required as well as a cash payment on settlement of C$175 000. Macusani would also issue Ram Resources with a C$300 000 convertible debenture.

The debenture would have a five-year term, bear interest at 10% a year, and be convertible at the option of the holder, any time after four months from the date of issue, into common shares of Macusani.

Macusani had a period of 30 days to conduct due diligence into the financial and legal status of the mining concessions. If Macusani was not sufficiently satisfied as to the legal status of the mining concessions, it could withdraw from the agreement.

The sale of the Peruvian assets forms part of Ram Resources’ restructuring process. The funds from the sale of the assets would be used to reduce debt, and to provide for the immediate future working capital needs of the company.

With the proposed sale of the Peru projects, the company was now well placed to complete the restructuring of its affairs.

“It is anticipated that this will place the company on a sound financial footing for the board to consider future directions which, until now, has been difficult to do, given the financial constraints on the company,” Ram Resources said in a statement.

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