Energy Fuels Inc. (TSX:EFR,NYSEMKT:UUUU) has entered into a Securities Purchase Agreement for the sale of its Bayswater Uranium Corp. shares to Mega Uranium Ltd. (TSX:MGA), for 1,750,000 newly issued common shares of Mega.
As quoted in the press release:
Energy Fuels acquired 2,759,807 shares of Bayswater as part of its August 30, 2013 acquisition of Strathmore Minerals Corp. The 2,759,807 shares represent approximately 11.5% of the issued and outstanding shares of Bayswater. The transaction is expected to be completed on or before January 17, 2014, or such other date as the parties may agree, and is subject to various conditions including acceptance by the Toronto Stock Exchange. The shares of Mega being acquired by Energy Fuels will be issued on a private placement basis and are subject to a statutory four-month holding period.
Energy Fuels President and CEO, Stephen Antony, said:
Energy Fuels and Mega have an established relationship, and Energy Fuels is already a shareholder of Mega through a previous non-core asset sale. Mega’s market capitalization is currently significantly lower than the Toro Energy Limited common shares it received as consideration for its sale of the Maitland Lake uranium project, which closed on November 19, 2013. Mega also owns other investments, including about 17% of the currently outstanding shares of NexGen Energy Ltd. Energy Fuels is pleased to increase its investment in Mega at this time.