Consolidated Uranium Closes The Acquisition Of The High-grade Matoush Uranium Project In Quebec, Canada

Consolidated Uranium Inc. (“CUR”, the “Company” or “Consolidated Uranium”) (TSXV: CUR) (OTCQB: CURUF) is pleased to announce that it has closed the previously announced acquisition (the “Acquisition”) of a 100% undivided interest in the high-grade Matoush Uranium Project (“Matoush” or the “Property”) located in the Province of Quebec, Canada.
Key Points:
High-Grade and Substantial Historic Resources – Based on a press release issued by Strateco Resources Inc. (“Strateco”) on December 7, 2012, Matoush was considered to have the following historical Mineral Resources:
Indicated Mineral Resources of 586,000 t at an average grade of 0.954% containing 12.329 m lbs of U3O8
Inferred Mineral Resources of 1,686,000 t at an average grade of 0.442% containing 16.44 m lbs of U3O8
This historical estimate is considered to be a “historical estimate” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and is not considered by the Company to be current. See below under the heading “Global Historical Mineral Resource Table”.
Advanced Stage Project – An Updated Preliminary Economic Assessment on the Property was published in April of 2010 which contemplated access via a ramp decline, mining using longhole methods followed by cemented rock fill (CRF).
Good Exploration Potential – The Matoush Fault Zone, the structure that controls the mineralization, has been identified over a strike length extending 11km southward and 5km northward beyond the historic resource area. In addition, many of the zones of mineralization within the historic Mineral Resources are open along strike and down plunge.
Proven Mining Jurisdiction with Uranium Endowment – Quebec ranks highly as a mining jurisdiction and has seen significant past expenditures on uranium exploration by both major and junior mining companies.
Compelling Acquisition Structure – Deferred cash and share based consideration offers potential to reduce the ultimate total purchase price equity dilution.
Philip Williams, CEO commented “We are very pleased to close this acquisition which adds another high-grade, advanced stage project, in a top ranked mining jurisdiction, to our global project portfolio. As highlighted when we initially announced the acquisition, we look forward to bringing a fresh perspective to development of the project with a focus on engagement with the local indigenous stakeholders before undertaking any project level activity. Our recently announced acquisition and strategic alliance with Energy Fuels partners us with a leading US uranium miner that boasts an exemplary track record of safe uranium mining and milling that we expect will serve as a model for the potential advancement of the Matoush project.”
Terms of the Share Purchase Agreement
In accordance with the terms of the share pursuant agreement entered into with respect to the Acquisition (the “Agreement”), CUR has acquired all of the shares of a special purpose vehicle (the “SPV”) that holds a 100% undivided interest in the Property. The SPV, which was an indirect wholly-owned subsidiary of certain funds managed or advised by Third Eye Capital Corporation or its affiliates, acquired the Property free and clear of any encumbrances pursuant to an approval and vesting order granted by the Quebec Superior Court dated April 30, 2021.
As upfront payment for the Property, the Company has paid consideration comprised of $3,500,000 in cash and issued 2,000,000 common shares in the capital of the Company (“Shares”) with an aggregate value of $3,700,000 at a deemed price of $1.85 per Share which was calculated based on the 20-day VWAP of the Shares on the TSX Venture Exchange (the “TSXV”) up to August 17, 2021. Pursuant to the Agreement, further deferred payment is due on or before the six-month anniversary of closing of the transaction comprised of $1,500,000 in cash and such number of Shares with a value of $2,000,000 at a price per Share based on the 20-day VWAP of the Shares on the TSXV up to the date prior to the deferred payment. Following the issuance of the Shares pursuant to the Acquisition, the Company now has 46,481,387 Shares issued and outstanding.
Historic Mineral Resources
Roscoe Postle Associates Inc. (“RPA”), an independent consulting company, prepared a technical report on the Property in accordance with the disclosure standards of NI 43-101 entitled “Technical Report on the Mineral Resource Update for the Matoush Project, Central Quebec, Canada” dated February 12, 2012. The Mineral Resource estimate was further updated by RPA in December 2012, as disclosed in a press release of Strateco dated December 7, 2012 (the “Historic Estimate”) and is considered to be a “historical estimate” under NI 43-101 and is not considered by the Company to be current. See below under the heading “Technical Disclosure and Qualified Person”.
About Consolidated Uranium Inc.
Consolidated Uranium Inc. (TSXV: CUR) (OTCQB: CURUF) was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, the company has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina and the United States each with significant past expenditures and attractive characteristics for development. Most recently, the Company entered a transformational strategic acquisition agreement and alliance with Energy Fuels Inc (NYSE American: UUUU) (TSX: EFR), a leading U.S.-based uranium mining company, to acquire a portfolio of permitted, past-producing conventional uranium and vanadium mines in the Utah and Colorado. These mines are currently on stand-by, ready for rapid restart as market conditions permit, positioning CUR as a near-term uranium producer.