Wildhorse Energy has signed a definitive agreement to sell its non-core Sweetwater uranium project, located in Wyoming, US, to a mining company for a cash consideration of $1.4m.
Under the terms of the asset purchase, sale and option agreement, the buyer will hold back $200,000 in order to satisfy certain conditions subsequent.
The deal enables the buyer to buy the company’s Bison Basin uranium project, also in Wyoming, for an additional payment of $100,000 for a period of 120 days commencing on the date of the agreement.
The cash proceeds will be used to further progress Wildhorse’s primary Mecsek Hills underground coal gasification (UCG) project in Hungary up the development curve towards first production of synthetic gas, which can be used as a feedstock for power stations.
The Company is currently working towards forming a joint venture with the Hungarian state-owned entities to re-start uranium mining at the project.
Wildhorse is focused on developing UCG and uranium projects in Central Europe.