Sassy Gold Walks Away From US$8.4 Million Purchase Of Uranium Assets
Sassy Gold (CSE: SASY) has walked away from a large transaction that would have seen the company enter into the uranium sector. The firm was set to acquire a total of fifteen uranium properties across Colorado and Utah, found within the Colorado Plateau.
The company has said it is walking away due to “a number of material political, environmental and technical risks” that were identified under the due diligence process before closing on the properties. The firm had attempt to rework the acquisition price of the assets, however those negotiations failed, and the firm walked from the transaction a week ago on May 24.
“Sassy had been looking forward to its acquisitions in Colorado and Utah, however, this is one of those cases where discretion is definitely the better part of valour. Sassy was forced to make the difficult decision to terminate the proposed transaction rather than carry on with the assumption of significant and previously undisclosed risks.” commented Mark Scott, CEO of Sassy.
READ: Sassy Gold Purchases 15 Uranium Properties In Utah And Colorado
With the failure of the asset purchase, the company has also cancelled a $2.5 million financing that was slated to occur at $0.0375 per share.
Going forward, the firm has said that it will continue to hold “considerable assets” in its portfolio, including the Foremore Project in the Eskay Camp of BC, and equity positions in a number of junior explorers.
“Fortunately, the Company maintains a portfolio of project opportunities under review at all times and we have moved on to evaluation of the next opportunities ahead of us. The Company has great assets in hand, an attractive share structure, and the backing of strong investors. We will continue to make solid decisions moving forward regarding value accretive transactions and the effective management of risk,” continued Scott.
The portfolio of uranium projects that the firm was to acquire consisted of 14 assets with some level of historical production in Colorado and Utah. The portfolio was to be acquired for US$8.4 million, of which US$2.1 million was to be paid in cash under an arrangement announced on March 1.
Sassy Gold last traded at $0.05 on the CSE.
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