Mega Uranium Ltd. Sells Langer Heinrich Royalty & Invests in Uranium Royalty Corp.
June 26 2019 - 4:25PM
Mega Uranium Ltd. (MGA: TSX) announces that it has sold its royalty
on the Langer Heinrich uranium project in Namibia (the “Royalty”)
to Uranium Royalty Corp. (“URC”) for $1,625,000, following the
exercise by URC of its option on the Royalty. URC issued
special warrants to Mega in payment of the purchase price, which
are automatically exercisable for common shares of URC upon the
earlier of four months and one day from issuance and completion of
a going public transaction.
The Royalty is AUS$0.12 for each kilogram of
yellowcake (U308) produced and sold from the Langer Heinrich
property by certain subsidiaries of Paladin Energy Ltd and was
acquired by Mega in 2006 as part of its acquisition of Redport
Limited.
Mega also announces that it has made an
additional equity investment of $750,000 in URC, as part of a
larger special warrant financing completed by URC. The
special warrants acquired by Mega under the private placement
financing and as consideration for the Royalty, together with the
common shares of URC previously acquired by Mega, represent
approximately 7.5% of the outstanding common shares of URC, on a
partially-diluted basis assuming the exercise of all of the special
warrants held by Mega.
ABOUT MEGA URANIUM LTD.Mega
Uranium Ltd. is a Toronto-based mineral resources company with a
focus on uranium properties in Australia and Canada and a portfolio
of equity investments in uranium-focused public and private
companies. Further information on Mega can be found on the
company’s website at www.megauranium.com.
For further information please contact:
Mega Uranium
Ltd.
Richard Patricio
Chief Executive Officer and
President
T: (416)
643-7630
info@megauranium.com www.megauranium.com
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