Uranium American Resources Inc. (OTC:UARI) said it has completed the acquisition of JAG Minerals Pty Ltd, securing full ownership of its US subsidiary and paving the way to accelerate development of uranium and vanadium assets in Colorado and Utah.
The company said the deal, which gives it 100% control of JAG Minerals USA Inc, was amended to allow the cash portion to be settled through a four-month note payable to JAG shareholders.
The notes total $2 million and carry a 14% payment-in-kind interest rate, helping the company finalize a previously announced financing.
The acquisition positions Uranium American Resources to advance a portfolio of 20 historic high-grade uranium and vanadium mine locations in Colorado and Utah, as it looks to move toward near-term production.
Over the past year, the company has completed a desktop review of mining and geological records for its Stateline properties in Colorado, conducted a radiation survey at its Sky properties in Wyoming that identified additional prospective areas, and restructured most of its convertible debt, steps it said were key to enabling project financing.
CEO William Hunter said the company plans to begin geophysical surveys and permitting work at its Stateline projects in the near term, as part of a broader strategy to advance the assets toward production.
“This work will allow us to advance these important projects toward production,” Hunter said in a statement.
“In addition, the uranium markets are seeing historic tailwinds with spot prices around US$85.00/lb. You can see the positive nature of this acquisition reflected in our stock price, which has risen significantly since the initial announcement of this transaction."