TSX-V-listed ValOre Metals has entered into a definitive agreement to sell its Angilak uranium project, in Nunavut Territory, to Labrador Uranium for C$3-million in cash and shares worth C$40-million.
As a condition to closing of the transaction, Labrador will complete a subscription receipt financing on a “bought deal basis” for gross proceeds of not less than C$12-million. Upon closing, the subscription receipts will convert to units of Labrador.
To provide immediate funding for exploration on the Angilak property, pending completion of the transaction during the current field season, ValOre and Labrador have entered into an earn-in agreement under which Labrador has the option to earn up to a 10% interest in Angilak by financing mineral exploration expenditures in the aggregate amount of up to $3.5-million on or before the first anniversary of the earn-in agreement
On closing of the Transaction, the earn-in agreement will effectively be assigned to and assumed by Labrador such that it will have 100% of the Angilak property.
“We are delighted to provide ValOre shareholders with a major ownership position in Labrador Uranium, which boasts a leadership team with a track record of success in the global uranium sector and significant capital markets strength. Labrador will be well funded and focused on rapidly advancing the Angilak Property within a pure play Canadian uranium vehicle,” commented ValOre CEO Jim Paterson.
In addition to the transaction and financing, ValOre intends to complete a private placement financing for aggregate proceeds of up to C$5-million.