Basin Energy has agreed to sell its Marshall uranium project in Canada to Green Canada Corp. (GCC).
GCC agreed to pay Basin C$600,000 in staged cash payments, with the first payment due on closing of the transaction.
Basin will also receive C$300,000 in shares and 9.99 per cent of the resulting listing entity after GCC lists on the Canadian Securities Exchange.
The transaction is now conditional primarily on the proposed reverser takeover of GCC by Maackk Capital Corp. and concurrent minimum C$2.5 million financing and admission to the CSE or such other stock exchange.
Basin Managing Director Pete Moorhouse said: “The execution of the definitive agreement marks a key milestone in unlocking value from the Marshall uranium project, while maintaining meaningful upside exposure for Basin shareholders.
“With GCC progressing toward its public listing and associated financing, we are pleased to see a clear pathway toward funded exploration and drill testing at Marshall in the near term.
“Importantly, Basin retains leverage and upside through our equity interest, buyback option and right of first refusal, ensuring continued alignment with the project’s success.”
The Marshall project is located 40 kilometres from the prolific McArthur River uranium mine, one of the world’s highest-grade uranium operations.
GCC is required to fund exploration expenditures for an initial work project in the Marshall project to be carried out within 24 months of closing the deal. The initial work program will have a budget of more than C$1.5 million.
In addition to the Marshall acquisition, Basin and CanAlaska agreed to grant GCC a nine-month exclusivity right to conduct due diligence and negotiate terms to acquire up to a 51 per cent stake in the North Millennium joint venture.
