Uranium Energy has completed the acquisition of CIC Resources’ (Paraguay) Alto Paraná Titanium project in the South American country's Alto Paraná and Canindeyú areas.
The move comes after UEC has exercised its option, in accordance with a previously signed agreement to acquire all of the issued and outstanding shares of CIC Resources (Paraguay), a subsidiary of CIC Resources.
Following completion of the transaction, UEC will now own 100% interest in the project.
Uranium Energy president and CEO Amir Adnani said: “Leveraging our in-country presence and know-how, we identified a timely and strategic opportunity to consolidate over 70,000ha making up the Alto Parana titanium project and its pilot plant for the benefit of UEC shareholders.”
"Approximately $25m has been invested in this project to date by CIC Resources and its former JV partner, Tronox."
A share and option agreement was signed with CIC Resources in March last year.
Under the agreement, UEC offered 664,879 restricted common shares to CIC Resources for total consideration of $1.02m.
The consideration comprises option exercise payment of $275,000 and the reimbursement made to CIC Resources of all maintenance costs relating to the project since the agreement was signed.
In addition, CIC Resources will be entitled to a 1.5% net smelter returns royalty on the project.
Meanwhile, UEC can exercise the right to acquire one-half percent (0.5%) of the royalty at a purchase price of $500,000 within six months.
The Alto Paraná Titanium advanced exploration stage project is located 100km north of Ciudad del Este and covers an area of 70,498ha of land. It has five mining permits granted by the Ministry of Public Works and Communications, Paraguay.