27th Jan 2014 09:51
LONDON (Alliance News) - URU Metals Ltd Monday said it has completed its due diligence obligations with respect to Umnex Minerals Limpopo Ltd and confirmed its 100% interest in the Zebediela Nickel Project in South Africa.
The base metals and uranium explorer and development company said it with now issue 33.2 million shares to Umnex in order to satisfy the takeover agreement made in December.
The December agreement meant that URU would acquire the remaining 26% of Zabediela from Umnex through two share issuances of roughly 16.6 million shares in URU to Umnex.
The agreement brought an end to arbitration proceedings between Umnex and URU's newly acquired subsidiary Southern African Nickel, and acts as a final settlement of all claims that the three companies have against each other.
The Zabediela project holds a combined inferred and indicated resource of over 1.5 billion tonnes of nickel and a preliminary economic assessment completed for the site in 2012 showed an indicated resource of 495.4 million tonnes averaging 0.245% nickel.
URU said in December that after the first stage of the transaction is completed it will be seeking a Black Economic Empowerment partner to help develop the project, in order to meet the 26% equity ownership requirement under South African Law.
URU shares were down 7.7% to 1.20 pence, putting them in the top ten AIM losers in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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