Pancontinental Uranium Corporation has been advised that Essential Mining Resources (EMR) has completed its due diligence in the Crossland Joint Venture and is proceeding to close, which is expected to occur before July 24, 2015.
Essential is purchasing the 43.72% interest in the JV held by Pancon’s wholly-owned subsidiary, Panconoz Pty Ltd. The other JV partner is Crossland Strategic Metals Ltd of Australia.
The definitive purchase and sale agreement (PSA) between EMR and Pancon is for the extensive Charley Creek rare earth element project, as well as a number of prospective uranium properties in the Northern Territory of Australia. EMR is a private Australian-based company which is 100%-owned by EMMCO Mining Sdn Bhd, a private Malaysian company beneficially held by a consortium of South East Asian investors.
The PSA provides for the following consideration for Pancon:
- Cash payments totalling Aus$2.55 million, including a deposit of Aus$450,000, which has been received; and
- A Gross Overriding Royalty of 1% on sales of production from 100% of the property.
Closing of the PSA will occur after EMR receives approvals for the transfer of the tenement titles, pursuant to the Minerals Titles Act of the Northern Territory, Australia.
Pancon president and CEO Rick Mark says, “We are very pleased to have received the positive due diligence decision from EMR. This is a critical technical milestone and moves the transaction to its final step, the transfer of tenement titles, before closing.
“This transaction provides the company with a substantial cash injection and the ability to benefit from all future production. This sale has been accomplished in a very difficult mining market and allows the company to pursue other opportunities immediately.”
Pancontinental Uranium Corporation is a Canadian-based company that has been focused on rare earth elements and uranium discovery and development.