F3 Uranium (TSXV: FUU) is proceeding with a previously proposed spinout of certain assets. The company has entered into a definitive agreement for the spinout of F4 Uranium Corp, establishing another uranium explorer focused on the Athabasca Basin.
F4 Uranium, as part of the spinout, will take with it 17 properties from F3’s portfolio. Those properties will make F4 one of the larger explorers in the region, with land claims totaling 168,422 hectares across the Basin. F3 claims that the transaction will unlock value for shareholders, given that the assets being spun out are currently overshadowed by the JR Zone discovery at the PLN project.
Post-spinout, F3 is to become solely focused on the PLN Project, with the company retaining the Patterson Lake North property along with the Broach and Minto properties, which collectively are known as the PLN project.
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The transaction, which has been approved by F3’s board of directors, will see F3 Uranium shareholders receive one share of F4 Uranium for every 10 shares held of F3. With approval now in hand from the firms board of directors, the arrangement remains subject to shareholder approval as well as court approval.
The spinout transaction is currently expected to be completed in the third quarter.
F3 Uranium last traded at $0.36 on the TSX Venture.
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