Strateco gains Australian uranium ally
TORONTO (miningweekly.com) – Uranium explorer Strateco Resources has agreed to a transaction that will see shareholder the Sentient group offload a 19.8% equity interest in the company to Toro Energy, which has a promising uranium project in Western Australia.
Under the terms of the deal, Sentient had agreed to subscribe for 125-million new fully paid Toro shares, at a price of A$0.08 each, for an investment of A$10-million.
In exchange for a further 236.5-million new shares, Toro acquired a 19.8% interest in Strateco, a C$3-million senior secured loan receivable in Strateco, C$14.1-million junior secured convertible notes in Strateco and certain other interests from Sentient.
The shares would be paid over in two tranches. The first 177.4-million was subject to Foreign Investment Review Board approval and the remaining 59.1-million to agreed conditions being met and any required shareholder approval.
Subsequent to the transaction, Sentient, which held 27.13% of Strateco's share capital, would retain an 8% stake in Strateco and 800 convertible notes, representing $800 000 secured by a hypothec on Strateco's assets.
Owing to an extended period of legal wrangling with the Quebec government and local First Nations, Boucherville, Quebec-based Strateco Resources in June said it was forced to adopt a cost-cutting programme and shutter its flagship Matoush camp, in the Otish mountains, in the north of the province.
The firm blamed its decision on the Quebec government's refusal to issue the final permit needed to start the advanced exploration phase of the Matoush project. The project had been on standby for over a year, since a moratorium and commission of inquiry into Quebec's uranium industry was announced on March 28, 2013.
Strateco said it would turn its attention to prospecting in Saskatchewan in the coming months, through its subsidiary SeqUr Exploration.
“We see the arrival of Toro as major shareholder of Strateco as a very positive development. Toro has shown clear interest in the Matoush project, as well as in SeqUr's uranium projects in Saskatchewan. Toro's experience going through permitting [for] the Wiluna project, in an area formerly under moratorium, will certainly be an asset for Strateco,” stated Strateco president and CEO Guy Hebert.
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