In conjunction with this transaction, Titan will reportedly acquire Uranium One’s 50% interest in the Hollie claims, Emery County, UT and transfer its 50% interest in the Breccia Pipe project, AZ and the Burro Canyon project in Colorado to Uranium One.
The company stated that the terms of the agreement include an initial cash payment of $850,000 for Sheep Mountain and for the Hollie claims. A payment of $2,000,000 if the month-end spot uranium price reported by Ux Consulting exceeds $65.00 per pound within three years of the closing date, payable within six months;
Also, a further payment of $4,000,000 if the month-end spot uranium price reported by Ux Consulting exceeds $85.00 per pound within three years of the closing date, payable within twelve months.
Titan will assume the full amount of the reclamation bond for the property on closing (total bond amount is $2.1m of which Titan has already contributed 50%). A credit of $500,000 is payable to Titan on closing, as payment for the transfer of Titan’s 50% interest in the Breccia Pipes project in Arizona and in the Burro canyon project in Colorado to Uranium One, the company said.
The current agreement includes the termination of the existing joint venture between the two companies. Closing of the transaction is expected to take place by the end of September, 2009.
Brian Reilly, president of Titan, said: “This acquisition is a significant milestone in our growth strategy and positions the company as a potential near term uranium producer in a mining jurisdiction that has a long history of uranium production.”
