Mr. Rick Mark reports
PANCON RECEIVES DEPOSIT AS PART OF THE SALE OF ITS INTEREST IN THE CROSSLAND JOINT VENTURE
Pancontinental Uranium Corp. (Pancon) has received the deposit of $450,000 (Australian) as part of the sale of its entire interest (43.72 per cent), held by the company's wholly owned subsidiary, Panconoz Pty. Ltd., in the joint venture with Crossland Strategic Metals Ltd. of Australia, which was previously announced on Jan. 15 of this year.
The definitive purchase-and-sale agreement (PSA) is with Essential Mining Resources Pty. Ltd. (EMR) for the extensive Charley Creek rare-earth-element (REE) project, as well as a number of prospective uranium properties in the Northern Territory of Australia. EMR is a private Australian-based company which is 100 per cent owned by EMMCO Mining Sdn Bhd (EMMCO), a private Malaysian company beneficially held by a consortium of Southeast Asian investors.
As reported on Jan. 15, 2015, the PSA provides for the following consideration for Pancon:
- Cash payments totalling $2.55-million (Australian), which includes the deposit of $450,000 (Australian);
- A gross-overriding royalty of 1 per cent on sales of production
from 100 per cent of the property.
Update
Of the $450,000 (Australian) received by the company, $164,109.25 (Australian) was paid to Crossland in full settlement of Pancon's debt to Crossland pursuant to the PSA.
Pancon has received shareholder approval of the transaction through written consent from shareholders representing more than 50 per cent of the issued shares of the company and obtained preliminary approval from the TSX Venture Exchange.
EMR's due diligence period has been extended to April 20, 2015. Subject to EMR's due diligence, the transaction is expected to close between April 30, 2015, and the end of July, 2015.
Closing of the PSA transaction includes the following conditions:
-
Completion of due diligence by EMR;
- Receipt of approvals pursuant to the Minerals Titles Act of the Northern
Territory, Australia. (The deposit is refundable to EMR if these
approvals are not received.)
Pancon president and chief executive officer Rick Mark stated: "This transaction enables Pancon shareholders to capitalize on our exploration success at Charley Creek; it provides the company with a cash injection and the ability to benefit from all future production. This sale has been accomplished in a very difficult mining market and allows the company to pursue other opportunities immediately."
We seek Safe Harbor.
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