Macusani Yellowcake has signed a letter of intent (LoI) to acquire Azincourt's adjacent uranium resources on the Macusani Plateau in south-eastern Peru.
Macusani Yellowcake would purchase Minergia, a subsidiary of Azincourt, for 68,350,000 common shares which represents 30% of the outstanding shares of Macusani post-transaction.
With this acquisition, Macusani would have one of the largest undeveloped uranium assets across the world with combined resource of 49.67 M lbs of measured and indicated (M&I) contained U3O8 and 47.49 M lbs of inferred contained U3O8.
The South American firm expects that Azincourt’s uranium resources can be easily incorporated into its existing mine plan.
Macusani president and CEO Laurence Stefan said, "The synergies from this transaction are obvious and offer the potential for substantial value creation for both Macusani and Azincourt shareholders."
Azincourt president and CEO Ted O’Connor said, "Once combined, Macusani will offer one of the largest contiguous uranium resource bases, the potential for substantial synergies from a combined mine plan and exploration upside which is very rare to find."
Following the proposed transaction, O’Connor would assume the role of CEO of Macusani, while Stefan will take up as president and COO.
The parties are working to sign a definitive agreement by 30 May 2014, and the proposed transaction is expected to close in June after obtaining required approvals.