Here's the deal - Energia sells Carley Bore Uranium Project for...

Here's the deal -


Energia sells Carley Bore Uranium Project for $15.8 Million

Key Points :

- Binding Heads of Agreement (HOA) signed to sell Carley Bore Uranium Project to Paladin Energy (PDN), owners of neighbouring Manyingee Uranium Project.

-Sale consideration of 45 million PDN shares plus A$1.6 million in cash (A$15.8 million of value based on PDN share price of 31.5c per share payable upon completion.

- Exploration and refurbishment program at Gorno Zinc Project to be increased in scope as a result of recently announced encouraging drill results and this transaction.


Energia Minerals Limited (ASX: EMX, “Energia” or the Company) is pleased to announce that it has signed a binding HOA to sell its Carley Bore Uranium Project in Western Australia’s Carnarvon Basin to Paladin Energy Limited (ASX: PDN) for A$15.8 million in cash and shares.


The consideration comprises 45 million PDN shares (of which 16 million shares will be held in voluntary escrow for a period of 12 months) and A$1.6 million in cash.

40 million PDN shares and the A$1.6 million in cash is payable upon completion (Tranche 1). The remaining 5 million PDN shares (Tranche 2) will be issued when Energia’s application for expenditure exemption on E08/1644 has been approved.

The number of shares to be issued in Tranche 2 will be adjusted downwards for any increase in the PDN share price above 45 cents per share so that the maximum value of Tranche 2 shares at the time of transfer does not have a market value of more than A$2.25 million.

The transaction is conditional upon Energia obtaining ministerial consent for the transfer of all tenements and if required, obtain shareholder approval for the transaction as well as PDN receiving FIRB approval.

PDN will also be granted a right of first refusal over the sale of any future tenements granted to Energia that share any boundary with the existing Carley Bore tenements as well as other tenements in the vicinity of the Carley Bore tenements.

Within 15 Business Days, PDN will prepare and submit to Energia for its consideration a fully termed agreement which incorporates the provisions of this HOA and until that agreement is executed, the parties shall remain bound by this HOA.