Canadian uraniam company U3O8 Corp has entered into a definitive agreement with Minexco Minerals to acquire gold exploration properties in Guyana, for an undisclosed sum.
Under the terms of the deal, Minexco will issue up to nine million shares to U3O8 Corp, which may also acquire an additional $1.2 million worth of Minexco shares in subsequent financings for a period up to 18 months from the effective date of the agreement.
U3O8 Corp's president and CEO Richard Spencer said that the company is happy to be partner with Minexco to consolidate its non-core exploration assets with Minexco's high-potential gold property.
"Our shareholders will gain exposure to Minexco's gold property and to early-stage targets that show potential for gold-copper deposits while U3O8 Corp remains focused on rapid uranium resource growth on our lead projects in Colombia, Argentina, and Guyana," said Spencer.
U3O8 said that the transaction will result in the consolidation of exploration properties around Minexco's Tamakay gold concession.
The principal targets in the consolidated exploration area are gold and gold-copper deposits.
Upon completion of 5,000m of drilling within the area of interest, Minexco will issue warrants to U3O8 Corp to acquire 5% of Minexco's Shares outstanding on a fully dilute basis, which will run for two years.