Uranium Resources signs binding amendment for sale of New Mexico assets
US energy company Uranium Resources has entered a binding amendment to the share purchase agreement with Laramide Resources for sale of its Churchrock and Crownpoint properties in New Mexico.
The deal is scheduled to close on 22 December. Although the amended agreement maintains the original transaction value of $12.5m declared in the letter of intent, certain terms and conditions of the deal have been modified.
Uranium Resources president and CEO Christopher M Jones said: “Completing this transaction is important for both companies and we are pleased that URI stockholders will be able to participate in Churchrock through URI’s ownership of Laramide equity. We look forward to working with Laramide to close this strategic transaction.”
The amended agreement reduces the amount of cash and promissory note to be issued at the closing against Laramide common stock. It retains a royalty on the Churchrock property and adds an option for Uranium Resources to purchase Laramide’s La Jara Mesa uranium development project in Cibola County, New Mexico.
The new agreement does not require Laramide to complete financing before closing of the deal.
Last October, Laramide paid Uranium Resources a non-refundable amount of $250,000 to extend the agreement, which will be treated as a pre-payment of the purchase price.
At closing, Uranium Resources will receive from Laramide $2.25m in cash, shares of Laramide common stock and warrants valued at $500,000, a promissory note in the amount of $5m, and a retained 4% net smelter royalty on the Churchrock property valued at $4.5m.
Furthermore, Laramide has agreed to decrease Uranium Resources’ option to purchase its La Sal uranium development project in San Juan County by $1m. Uranium Resources can now acquire La Sal uranium development project at $3m.
The purchase options of La Sal and La Jara Mesa projects will be valid for 12 months from the agreement's closing date.