Mining company Auric Minerals has concluded the acquisition of Central Uranium Resources (CURC), a privately held company in British Columbia, Canada.
The transaction, first disclosed in November, has been finalised at a valuation of approximately C$1.92m ($1.37m).
CURC is notable for holding the rights to the Route 500 property in Newfoundland and Labrador, an area with promising uranium mineralisation.
The Route 500 property, situated roughly 70km east-south-east of Churchill Falls, encompasses 441 claims over an expanse of 11,025 hectares (ha).
The region is known for uranium mineralised pegmatite intrusions identified in adjacent claims, suggesting a reasonable potential for further discoveries on the property.
The Route 500 property lies within the Wilson Lake Terrane of the Grenville Structural Province in Labrador, which is predominantly characterised by high-grade paragneiss, interspersed with local occurrences of granodiorite and diorite orthogneiss.
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The acquisition was executed according to a share exchange agreement between Auric Minerals, CURC and CURC’s shareholders.
Under the agreement’s terms, Auric Minerals issued a total of 12 million common shares and three million common share purchase warrants to CURC’s shareholders in exchange for all outstanding shares of CURC.
Each consideration warrant allows the holder to purchase additional shares at a price of $0.18 until 11 December 2027.
The consideration shares and warrants are currently restricted from resale and cannot be transferred until ten days after the filing of the Business Acquisition Report.
It is important to note that Auric Minerals and CURC, including its shareholders, maintain an arm’s length relationship.
The transaction does not represent a fundamental change for Auric Minerals nor does it result in a change of control of the company.
Furthermore, no finder’s fees are associated with the completion of this transaction.
