Strathmore Minerals Corp STHJF

Pine Tree- Reno Creek sale.

[easyryder]

July 02, 2013 14:21 ET

Strathmore Completes Sale of Pine Tree-Reno Creek Uranium Royalty for US$3 Million Cash

 

 

KELOWNA, BRITISH COLUMBIA--(Marketwired - July 2, 2013) - Strathmore Minerals Corp. (TSX:STM)(OTCQX:STHJF) ("Strathmore" or "the Company") is pleased to announce it has completed the sale of its Pine Tree-Reno Creek 5% gross revenue uranium production royalty (the "Royalty") to privately held AUC LLC ("AUC") for US$3 million cash. Strathmore and Energy Fuels Inc. ("Energy Fuels") (TSX:EFR)(OTCQX:EFRFF) previously announced on June 11^th, 2013 that a definitive arrangement agreement (the "Arrangement Agreement") had been completed, whereby Energy Fuels would acquire Strathmore by way of a plan of arrangement. This transaction is expected to close in late August or September 2013, subject to shareholder and stock exchange approvals. In addition, as a means of providing interim funding to Strathmore, Energy Fuels had agreed to separately acquire the Royalty in exchange for a US $3 million non-interest bearing, unsecured convertible promissory note (see press release dated May 24^th, 2013). Both Strathmore and Energy Fuels believe the alternative sale of the Royalty to AUC represents a good opportunity to monetize a non-core asset of Strathmore for significant cash proceeds which, in light of the Arrangement Agreement, is in the best interests of both Strathmore and Energy Fuels shareholders. Proceeds from the Royalty sale have been added to Strathmore's working capital, as per an escrow agreement completed with Energy Fuels.

Raymond James Ltd. provided financial advisory services to Strathmore with respect to this Royalty transaction.