Uranex plan falters Monday, 7 November 2011URANIUM explorer...

Uranex plan falters

Monday, 7 November 2011

URANIUM explorer Uranex’s deal to sell its Australian uranium assets to the Shanghai Zhongfu Group has been dropped after the China-based company backed out.

Zhongfu determined it was not satisfied with the deal following its due diligence investigation and as a result notified Uranex it would not be proceeding with the transaction.

Under a condition precedent in the agreement, Zhongfu had to be satisfied with the agreement at its sole and absolute discretion.

As per the agreement, Uranex will retain the $A500,000 non-refundable deposit, short of the $20 million cash payment it was expecting to receive for its assets.

Uranex’s Australian assets include the Bremer Basin and Thatcher Soak projects in Western Australia and the Alligator Rivers property in the Northern Territory.

Uranex signed the heads of agreement on August 22 and up until now, Zhongfu remained unnamed in the partnership, as part of confidentiality provisions in the agreement.

With the exclusivity and confidentiality provisions under the heads of agreement now extinguished, Uranex has restarted discussions to sell its Australian assets in order to focus on its African uranium and coal projects.