Americas Uranium has acquired a 100% interest in the Treeline uranium property in the counties of Cibola and McKinley in New Mexico, US.
The company reported the closing of the transaction, as outlined in a previously announced mineral property purchase agreement with Verdera Energy and its wholly owned subsidiary, NM Energy.
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The deal was carried out through Americas Uranium’s newly established Nevada subsidiary, NUCA Energy.
Under the terms, Americas Uranium paid Verdera $100,000 in cash and issued 701,754 common shares at $0.285 per share deemed price.
This initial share issuance represents $141,612 (C$200,000) of a total C$2m in aggregate share consideration payable under the agreement. The shares issued at closing are subject to a hold period of four months and one day from the date of closing.
The remaining C$1.8m in share payments will be distributed in further stages over the next 36 months.
Additionally, as part of the agreement, Americas Uranium holds a right of first refusal over certain adjacent property interests if Verdera decides to sell or transfer these assets in future.
Verdera has been granted a 1.5% royalty on the property.
Americas Uranium has the option to buy one-third of this royalty for a single payment of C$400,000 at any time after the closing date.
The facility is also subject to existing royalty arrangements including a net proceeds royalty of 2% on uranium and a 2% net smelter returns royalty on other minerals, as outlined in a previous agreement between Verdera and enCore Energy.
Americas Uranium president and CEO Nicholas Luksha said: “Closing the Treeline acquisition marks an important milestone for Americas Uranium and gives us the opportunity to move from reviewing the historical work to actively advancing exploration on the property.
“The Treeline Property has multiple areas that warrant further evaluation and our immediate priority is to bring that information together into a modern geological framework that can guide our next phase of exploration.”
