Green Canada Uranium (TSXV: GCUC) has closed its reverse takeover, completing the deal on September 1 through a three-cornered amalgamation. Shares are expected to begin trading on the TSX Venture Exchange on September 9 under the symbol GCUC as a Tier 2 mining issuer.
The company’s anchor asset is the Marshall Project, which consists of seven claims covering 11,225 hectares in the Athabasca Basin, acquired from Basin Energy Limited. Green Canada is paying $600,000 in four $150,000 annual instalments, plus another $300,000 that begins with 588,235 shares issued at $0.17 and continues as cash over two years. Basin also received 6,376,066 shares, leaving it with 9.99% of the company on closing.
Basin has not walked away entirely. It holds a three-year right of first refusal over any sale of the project and can buy back up to a 25% interest for $1,000,000, an option that survives until the fifth anniversary or until $10 million has been spent on exploration. Basin can nominate a director while that option is live.
Green Canada has committed to spending at least $1.5 million on Marshall within 24 months. CanAlaska Uranium Ltd. will run the program as operator and takes a fee equal to 20% of initial exploration expenditures.
A second property may follow. An exclusivity agreement signed in February with CanAlaska and Basin gives Green Canada a nine-month look at the North Millennium project and the option to earn up to a 51% interest.
In terms of management, Richard Mazur takes the executive chairman role. He is a registered geoscientist with more than 45 years in the sector and founded Forum Energy Metals. Greg Ferron, previously in senior roles at Laramide Resources, Treasury Metals and TMX Group, is president and chief executive alongside his role at PTX Metals. Cindy Davis, chief financial officer at PTX Metals, holds the same post here.
PTX Metals is the largest shareholder at 28.46% of the 63,824,480 shares now outstanding. Basin Energy holds 11.54%.
The concurrent financing in line with the RTO meanwhile raised $991,348 across two flow-through tranches, with proceeds earmarked for exploration spending.
Green Canada Uranium is set to begin trading September 9.
