Mr. Richard Patricio of Mega Uranium reports
MEGA URANIUM LTD. AND CAMECO AUSTRALIA PTY LTD ENTER FORMAL BINDING FARM IN AND JOINT VENTURE AGREEMENT FOR KINTYRE ROCKS PROJECT, WESTERN AUSTRALIA
On July 11, 2013, Mega Uranium Ltd. entered into a non-binding farm-in and joint venture terms sheet with Cameco Australia Pty. Ltd., a wholly owned subsidiary of Cameco Corp., in respect of certain granted tenements and tenement applications that comprise Mega's Kintyre Rocks project, located in the East Pilbara region of Western Australia. The project, owned by Boxcut Mining Pty. Ltd., a wholly owned subsidiary of Mega, immediately surrounds the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi Development Pty. Ltd.
Mega is pleased to announce that it has now completed negotiations of, and entered into, a formal binding farm-in and joint venture agreement for the project with Cameco, in place of the terms sheet.
Pursuant to the definitive agreement:
-
Cameco may earn an initial 51-per-cent interest in the project by sole financing expenditure for exploration activities of $2-million (Australian) within 24 months
from the date of the definitive agreement.
- Upon Cameco earning a 51-per-cent interest in the project, Boxcut and Cameco
will form a joint venture for the purpose of maintaining and exploring,
and, if justified, the development and mining of the project.
- Cameco will be the operator of the project during the stage 1 farm-in
period and the manager of the joint venture after the joint venture
formation date.
- Cameco may elect to earn an additional 19-per-cent interest in the project (for
an aggregate total interest of 70 per cent) by sole financing expenditure for
exploration activities of $4-million (Australian) (inclusive of the $2-million
(Australian) expenditure to earn a 51-per-cent interest in the project) within four years
from the date of the definitive agreement.
The definitive agreement otherwise contains terms, representations and warranties that are customary for an agreement of its kind. The definitive agreement represents a great opportunity for Mega to advance the exploration and development of the project with a world-class joint venture partner that has significant uranium exploration and other expertise in the area.
Mega looks forward to working with Cameco to advance the project.
Kintyre Rocks project, Western Australia
The project comprises granted exploration licences E45/2690 and E45/2691, and applications for prospecting licences P45/2657, P45/2658 and P45/2659. These tenements surround the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi. Within Mega's ground are geological settings analogous to that of the Kintyre deposit.
We seek Safe Harbor.
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