Verdera Energy has entered into an agreement to sell a 100% interest in the Treeline Uranium Project in New Mexico to Americas Uranium Corp., subject to existing and newly created royalties.
Under the transaction, Verdera will receive US$100,000 in cash and C$2 million in Americas Uranium shares, with 90% of the share consideration issued in stages over the 36 months following closing.
Verdera will also receive a 1.5% net proceeds royalty on uranium and a 1.5% net smelter return royalty on other minerals, with the latter reducible to 1% through a C$400,000 payment.
Americas Uranium will receive a right of first refusal covering certain additional mineral rights adjacent to Treeline.
Historical reports reviewed by Axiom Exploration Group indicate an estimated 1.02 million pounds of U3O8 at the property. Verdera emphasized that the estimate is historical and does not constitute a current NI 43-101 mineral resource or reserve.
The Treeline property is located in Cibola and McKinley counties in New Mexico.
Verdera said the divestiture allows it to focus on four larger properties with historical resources while continuing work on a NI 43-101 technical report for its West Largo Project and evaluating a database containing more than 200,000 drill-hole logs.
KEY QUOTE:
“The Treeline Uranium Project transaction is an example of the potential wealth of opportunities available to Verdera from the New Mexico database acquired through the enCore Energy transaction and acquisition of the Kerr McGee New Mexico database. While Treeline is a good exploration project with potential to expand the historic mineralization previously outlined, Verdera’s business plan is to focus on advancing its four large-scale properties with historical resources established by name-brand oil companies. This transaction provides immediate value to the Company and its shareholders on a property not in our project pipeline. At Verdera, our team continues to advance our key projects including a NI 43-101 technical report underway on the West Largo Project while we data-mine the vast database, containing over 200,000 drill hole logs, for additional opportunities.”
Janet Lee-Sheriff, Chief Executive Officer of Verdera Energy
