(15-20 min delay)
Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
Mega has entered into an agreement for the farm in and joint venture of its Kintyre Rocks Project to Cameco Corporation (TSX: CCO, NYSE: CCJ).
Principal terms of the farm-in and joint venture include:
- Cameco may earn an initial 51% interest in the Project by solely (no contribution from Mega) funding expenditures for exploration activities of AUD$2 million within 24 months from January 30, 2014, the date of the agreement (the “Stage 1 Farm In”).
- Upon Cameco earning a 51% interest in the Project, Boxcut, a wholly owned subsidiary of Mega, and Cameco will form a joint venture for the purpose of maintaining and exploring, and, if justified, the development and mining of, the Project.
- Cameco will be the operator of the Project during the Stage 1 Farm In period and the manager of the joint venture after the joint venture formation date.
- Cameco may elect to earn an additional 19% interest in the Project (for an aggregate total interest of 70%) by solely funding expenditures for exploration activities of AUD$4 million (inclusive of the AUD$2 million expenditures to earn a 51% interest in the Project) within four (4) years from January 30, 2014.
Kintyre Rocks Project, Western Australia
The Project comprises granted exploration licences E45/2690 and E45/2691, and applications for prospecting licences P45/2657, P45/2658 and P45/2659. These tenements surround the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi. Within Mega's ground are geological settings analogous to that of the Kintyre deposit.
See press release dated January 30, 2014.