- Wealth Minerals (WML) has signed a one-year extension to a previously signed memorandum of understanding with Uranium One Group
- Originally signed in mid-October last year, the agreement allows Uranium One to acquire a 51 per cent interest in Wealth Minerals’ Atacama lithium project
- It also outlines a due diligence period in which Uranium One may conduct technical, legal, financial and other work, and provides the right to match any alternative deal
- In addition, the MOU provides for an off-take agreement whereby Uranium One would have the right to purchase all of the products produced from the Atacama Project
- Wealth Minerals (WML) is currently down 9.09 per cent and is trading at C$0.10 per share
Wealth Minerals (WML) has signed a one-year extension to a previously signed memorandum of understanding with Uranium One Group.
The agreement was originally signed back in mid-October last year, and allows Uranium One to acquire up to a 51 per cent interest in Wealth Minerals’ Atacama lithium project, which covers roughly 46,200 hectares in northern Chile.
It also outlines a due diligence period during which Uranium One will be able to carry out technical, geological, legal and financial activities, and offers the right for Uranium One to match any competing offers.
While it remains subject to the formation of a definitive purchase and sale agreement, it is a key pillar in establishing a later off-take deal, under which Uranium One would have the right to purchase 100 per cent of the products produced from the Atacama Project.
Among a number of responsibilities established under the deal, Uranium One is expected to apply its ecologically-friendly sorption lithium extraction technology at the project.
Tim McCutcheon, President of Wealth Minerals, said he is pleased to have extended the opportunity to work with Uranium One’s technology.
“We are glad to have more time to work with U1G under the previously signed MOU, and the one-year extension demonstrates that all parties remain interested in developing Wealth’s core Atacama asset.
“We believe that solar evaporation is an outdated production technique and U1G’s sorption technology is the future direction the industry will take, as it is efficient and environmentally friendly,” he added.
Wealth Minerals (WML) is currently down 9.09 per cent to C$0.10 per share at 2:18pm EDT.