Bayswater Completes Sale of Reno Creek Interest
Bayswater completes Reno Creek interest sale
2017-08-10 15:32 ET - News Release
Mr. Victor Tanaka reports
BAYSWATER COMPLETES SALE OF RENO CREEK INTEREST TO URANIUM ENERGY CORP
Pursuant to Bayswater Uranium Corp.'s May 11, 2017, announcement, Uranium Energy Corp. (UEC) has completed the acquisition of the the Reno Creek in situ recovery uranium project in Wyoming, including the Bayswater Uranium's 2.73-per-cent interest therein.
Transaction details
As consideration for its interest in the project, Bayswater received the following consideration from UEC:
- An aggregate of 409,170 shares of UEC, of which 392,927 shares were attributable to the sale of the interest and a further 16,243 shares of UEC were issued in settlement of certain reimbursable expenses that were incurred respecting the project since the execution of the sale agreement and for certain insurance costs incurred at closing;
- 308,728 warrants of UEC, with each warrant entitling the holder to acquire one share of UEC at an exercise price of $2.30 (U.S.) per share for a period of five years from closing. The warrants will have an accelerator clause which provides that, in the event that the closing price of UEC's common shares on its principally traded exchange is equal to or greater than $4 (U.S.) per share for a period of 20 consecutive trading days, UEC may accelerate the expiry date of the warrants to within 30 days by providing written notice to the holders;
- Payment of $2,807 (U.S.) in lieu of receiving a 0.01403-per-cent capped net profit interest.
In addition, the company also received a further cash payment of $24,630 (U.S.), representing the company's entitlement to cash remaining in the entity holding the project as at closing.
All securities issued to Bayswater are subject to a four-month hold period expiring Dec. 10, 2017, pursuant to applicable securities legislation, and UEC has agreed to register the UEC shares issuable with the U.S. Securities and Exchange Commission for resale in the United States. Further information about the transaction and the project are available from UEC's Aug. 10, 2017, news release. Information about the Reno Creek in situ recovery uranium project is also available at UEC's website.
About Bayswater Uranium Corp.
Bayswater Uranium is a uranium exploration company. Bayswater owns a 100-per-cent interest in the Brudell property located in the southwestern Athabasca basin, Saskatchewan, approximately 40 kilometres northeast of NexGen Energy's Arrow uranium project.