The agreement gives AEFI a six-month exclusive option to purchase all of the issued and outstanding common shares of Prospect Uranium in exchange for an aggregate of 4 million common shares of AEFI, pending satisfactory completion of due diligence reviews by AEFI and Prospect and other customary conditions to closing.
AEFI paid $15,000 for the option. The board of directors of Prospect Uranium and shareholders holding a majority of the outstanding shares of Prospect Uranium voting securities have already approved the transaction.
Prospect Uranium explores for and develops uranium mining properties primarily in North Dakota.
Prospect Uranium’s assets include uranium leases on approximately 1,026 acres of private property in southwestern North Dakota.
Historical estimates indicate approximately 8 million pounds of U3O8 in a four square-mile area including and surrounding the uranium leases.
Drill logs show uranium mineralized roll fronts in sandstone, with uranium mineralization occurring within 350ft of the surface.
Based upon historical data, the company has identified the potential for development using either open pit or ISR mining methods.
AEFI would also gain the exclusive control of Prospect Uranium’s historical exploration database.
