A total of 37 million URI common shares will be issued for the merger.
An affiliate of Resource Capital Fund will provide $20m that will be used to retire the majority of Neutron’s outstanding debt owed to RMB Australia Holdings, while the remainder of debt owed to RMB will be converted into URI common stock.
The deal brings the total of the New Mexico uranium holdings for the combined companies at about 206,600 acres.
URI claimed acquisition of Neutron will position it as one of the largest US uranium development companies and adds a good balance of mid- and long-term uranium production opportunities.
The deal will also bring resource development synergies on neighbouring properties in the Ambrosia Lake region with significant exploration upside from the portfolio of Neutron properties.
Neutron is a private uranium exploration and development company with significant assets located in the Grants Mineral Belt of New Mexico, including the Cebolleta and Juan Tafoya projects that cover 10,814 acres.
The transaction is expected to close in the third quarter of 2012.
