- Consolidated Uranium (CUR) has agreed to acquire all of the issued and outstanding shares of Virginia Energy (VUI)
- Virginia Energy owns 100 per cent of the Coles Hill Uranium Project located in south central Virginia, United States, which is the largest undeveloped uranium deposit in the U.S
- The implied equity value of the transaction is equal to approximately $32.2 million
- In connection with the transaction, Virginia Energy has agreed to issue, and Consolidated Uranium has agreed to purchase, on a non-brokered private placement basis, 2,000,000 Virginia Energy shares at a price of $0.50 per share for gross proceeds of $1,000,000
- Consolidated Uranium Inc. opened trading at $1.93 per share
Consolidated Uranium (CUR) has agreed to acquire all of the issued and outstanding shares of Virginia Energy Resources (VUI).
Virginia Energy owns 100 per cent of the Coles Hill Uranium Project located in south central Virginia, United States, which is the largest undeveloped uranium deposit in the U.S. and among the largest projects by total uranium resources in the world.
Under the terms of the transaction, Virginia Energy shareholders will receive 0.26 of a common share of Consolidated Uranium (a CUR share) for each Virginia Energy share held.
Existing shareholders of Consolidated Uranium and Virginia Energy will own approximately 82.4 per cent and 17.6 per cent, respectively, of the outstanding CUR shares upon the closing of the transaction.
The implied equity value of the transaction is equal to approximately $32.2 million.
“We are very excited to enter into this agreement to acquire Virginia Energy,” said Philip Williams, Chairman and CEO of Consolidated Uranium.
“The acquisition of Coles Hill complements our existing U.S. portfolio of assets while significantly increasing our uranium exposure globally,” he added.
“We are very pleased to announce this agreement with Consolidated Uranium,” noted Walter Coles Sr., Chairman and CEO of Virginia Energy.
“We see this transaction as a tremendous outcome for Virginia Energy shareholders who will receive an immediate and substantial premium to the Virginia Energy share price,” he added.
Coles Hill is located on gently rolling hills in Pittsylvania County, southern Virginia, on approximately 3,000 acres in close proximity to established infrastructure and skilled labour.
In connection with the transaction, Consolidated Uranium and Virginia Energy have also signed a subscription agreement.
Under the subscription agreement, Virginia Energy has agreed to issue, and Consolidated Uranium has agreed to purchase, on a non-brokered private placement basis, 2,000,000 Virginia Energy shares at a price of $0.50 per share for gross proceeds of $1,000,000.
Upon closing of the concurrent private placement, Consolidated Uranium will own approximately 3.0 per cent of the issued and outstanding Virginia Energy shares.
Virginia Energy intends to use the proceeds of the concurrent private placement to fund lease extensions for the project, general and administrative expenses and transaction expenses through to the closing of the transaction.
Consolidated Uranium Inc. was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation.
Virginia Energy Resources Inc. is a uranium development and exploration company.
Consolidated Uranium Inc. opened trading at $1.93 per share.
