www.strathmoreminerals.com
Strathmore is one of the largest holders of in-ground uranium resources in the United States. The Company's goal is to become a leading uranium producer in the United States. Its advanced projects are located in the two largest historical uranium producing regions: the Grants Mineral District in New Mexico and the Gas Hills Uranium District in Wyoming.
Strathmore to Receive US$31 Million from Bayswater Uranium for Pine-Tree Reno Creek
Strathmore Minerals Corp (TSX-V: STM) announced it has agreed amended terms for its sale of the Pine-Tree Reno Creek property to Bayswater (TSX-V: BAY) subsidiary NCA Nuclear (‘NCA’). In the revised deal Strathmore will receive a total of US$31 million combining cash and equity, over the next 2 years. The transaction is expected to complete on January 27th 2010.
The Canadian based resource company, is proceeding with the revised agreement, so it can focus on its flagship Roca Honda project in New Mexico and the advancement of its Gas Hills project in Wyoming. Earlier this month, Roca Honda was deemed to be “administratively complete” allowing the company to obtain regulatory approvals for the development of the project.
Upon closing, NCA will gain a 25% interest following a $5m cash payment plus an additional $250,000 in Bayswater common shares. By the end of June 2010, the uranium explorer’s interest will increase to 51%, subject to a further cash payment of $5m and another $250,000 in Bayswater common shares.
In December 2010, the company will have acquired a total interest of 75% in the uranium project, following a $10,500,000 cash payment and the issuance of $500,000 Bayswater shares.
Alternatively by the end of 2010, NCA may opt to forego the payments subject to delivering a Bankable Feasibility Study (BFS) by December 31st 2013. The deferred $10.5m (Cash & Stock) payment will be due within 90 days of receipt of a BFS. Should the payment not be met, a new Joint Venture will be established between the companies on a 51-49% basis.
Beyond this point, If NCA doesn’t acquire the remaining 25%, Strathmore has the right to retain its interest or exchange it for a 5% royalty from sales of all uranium and uranium by-products produced from the Pine-Tree Reno Creek property.
To date, Strathmore has completed NI 43-101 resource estimates for the Reno Creek and Southwest Reno Creek lands within the overall project.
Strathmore has been exploring the Pine Tree-Reno Creek Properties through a joint venture with American Uranium Corporation (OTCBB: ACUC) since 2007. Under the JV AUC has been working under option, whereby the Denver headquarter exploration company can earn a 22.5% interest by spending $12.375, and up to 60% interest through exploration expenditures totalling $33 million by 2013.
