Under the terms of the agreement, Enterprise Uranium will acquire 37,280,714 Energia shares from Uranium Equities.
Enterprise Uranium will pay $500,000 in cash while the balance will be fully paid ordinary shares in ENU at a deemed issue price of four cents while providing Uranium Equities’ subsidiary UEQ Investments a 10.49% interest in the company.
Commenting on the strategic investment, ENU chairperson Anna Mao said Energia’s Carley Bore uranium deposit in the Carnarvon basin has considerable upside potential.
"We see Western Australia as being geologically favorable for further uranium discoveries and the eventual development of a number of major uranium mining and processing businesses," Mao added.
"We also see a bright future for uranium prices, as solid demand for uranium to fuel nuclear reactors in China and other south-east Asian countries materializes in the coming years."
