Verdera Energy, an exploration-stage mining company, has agreed to divest its Treeline Uranium Project in New Mexico, US, to Americas Uranium under a mineral property purchase and sale agreement.
The transaction grants Americas Uranium a 100% interest in the Treeline property, situated in Cibola and McKinley Counties, subject to existing and newly granted royalties.
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The agreed consideration for the acquisition includes a cash payment of $100,000 upon closing and C$2m in common shares of Americas Uranium.
Most of the share consideration, specifically 90%, will be issued in stages over a period of 36 months following the completion of the deal.
Verdera will also retain a 1.5% royalty on net proceeds from uranium production and a 1.5% net smelter returns royalty on other minerals from the property.
This royalty on both uranium and other minerals can be reduced to 1% with a C$400,000 payment to Verdera.
Verdera Energy CEO Janet Lee-Sheriff said: “The Treeline Uranium Project transaction is an example of the potential wealth of opportunities available to Verdera from the New Mexico database acquired through the enCore Energy transaction and acquisition of the Kerr McGee New Mexico database.
“While Treeline is a good exploration project with potential to expand the historic mineralisation previously outlined, Verdera’s business plan is to focus on advancing its four large-scale properties with historical resources established by name-brand oil companies.”
According to Axiom Exploration Group’s review of January 2005 historical reports, the property has an estimated 1.02 million pounds (mlb) of triuranium octoxide.
However, this estimate is considered historical and does not meet current NI 43-101 mineral resource or reserve standards.
Uranium mineralisation at Treeline has been identified mainly within the Poison Canyon sandstone, with exploration revealing two main trends, named North and South.
The North Trend is reported to extend around 2,000ft, while the South Trend has a strike length of roughly 3,250ft.
Americas Uranium will also receive a right of first refusal for certain additional mineral rights neighbouring the Treeline property.
The area has a history of uranium exploration and mining including previous activity at the nearby San Mateo mine.
