17th Feb 2015 10:01
LONDON (Alliance News) - Rose Petroleum PLC Tuesday said its wholly owned subsidiary has completed the sale of its 50% stake in the Wate breccia pipe uranium project in the US, for USD250,000 more than originally agreed.
The subsidiary, VANE Minerals (US) LLC, has sold its 50% stake in the project to EFR Arizona Strip LLC, a subsidiary of Energy Fuels Inc, for USD1.75 million compared to the originally agreed price of USD1.5 million, said Rose in a statement.
The two parties have signed a revised purchase and sale agreement which has replaced the original agreement, and Rose has received an initial payment of USD250,000 from EFR Arizona.
Under the deal, Rose will receive another a payment of USD250,000 on February 13, 2016 and again a year later in 2017 alongside a further USD250,000 in conditional cash and a 2% production royalty capped at USD750,000, said Rose in a statement.
Rose said EFR Arizona will purchase the royalty once Rose has received USD750,000 in royalties, or EFR Arizona pays Rose USD750,000, minus any royalties previously paid.
"I am pleased that we have now finalised this transaction, having negotiated a new overall sales price which represents more than a 16% increase from the original agreed price. The proceeds will be used for working capital and further exploration expenditures across both our mining and oil & gas divisions," said Chief executive Matthew Idiens.
Rose shares were up 8.7% to 1.93 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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