IsoEnergy Sells Off Argentina Projects For US$10 Million
IsoEnergy (TSX: ISO) is in the process of offloading non-core projects, announcing this morning that is has disposed of its Argentina portfolio of projects.
The assets to be disposed of specifically include the Laguna Salada and Huemul projects, both of which have been sold to Jaguar Uranium Corp, a currently private issuer that aims to go public on a North American exchange in the coming months. The assets were sold for total compensation of C$13.6 million.
Compensation under the transaction includes US$10 million of Class A common shares of Jaguar, at a price of US$5.00 per share, as well as a 2% NSR on the Laguna Salada project and a 1% NSR on a portion of the Huemul project. An option also exists to acquire a 1% NSR on all production from the remainder of the Huemul project. If Jaguar fails to go public in the next 12 months, IsoEnergy will also be entitled to US$2.0 million in addition shares.
As part of the transaction, IsoEnergy will also have the right to nominate one member to Jaguar’s board of directors.
“Since the merger with Consolidated Uranium late last year, IsoEnergy has been largely focused on advancing the Laroque East project in the Athabasca Basin, host to the high-grade Hurricane Deposit, and restarting its past producing uranium mines in Utah, the Tony M, Daneros and Rim Mines. At the same time, we have been pursuing opportunistic transactions to realize value from “non-core” assets in the portfolio. Today’s announcement is one such transaction,” commented Philip Williams, CEO of IsoEnergy.
IsoEnergy last traded at $3.52 on the TSX.
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