- High-grade surficial phosphate deposit highly enriched in heavy rare earth elements located in Arkansas
- Two strategic and critical products with strong growth in demand
- The quality of the phosphates is at the high end of the producing phosphates in the United States
- REE enrichment is among the highest in the USGS database
- More than 20 REE projects worldwide in terms of volume
- More than 15 global projects in terms of rating
- Proximity to national markets with export and transport rail infrastructure
Vancouver, British Columbia, March 09, 2022 (GLOBE NEWSWIRE) — First Uranium Resources Ltd. (the “Company” Where “First uranium”) (CSE: URNM) (KMMIF: OTC) is pleased to announce that it has entered into a Binding Letter of Intent (the “Letter of Intent”) for an option to purchase all shares of Southwind Corporation (“The south wind”), a Delaware company, holding significant exploration and development properties in and around Independence County, Arkansas, United States of America.
Southwind Corporation is an Arkansas-based phosphate and heavy rare earth development project operated by experienced geologists and resource contractors; Paul Barrett and Erika Syba. The project assets host a high-grade surface phosphate deposit highly enriched in heavy rare earth elements. The deposit is made up of two strategic and critical products with strong growth in demand: Phosphate and Heavy Rare Earths. Phosphate prices are approaching 10-year highs. The project is close to producing rock quarries and is therefore close to rail exports and additional transport infrastructure.
- Phosphate content is at the upper end of producing phosphates in the United States (according to the US Geological Survey)
- REE enrichment is highest in USGS database (based on US Geological Survey)
- More than 20 REE projects worldwide in terms of anticipated volume
- More than 15 global projects in terms of rating
Project characteristics are based on US Geological Survey data and are not included in an NI 43-101 report. References to grade and size and scope of the project are therefore provided for context only and should not be relied upon by readers to assess the technical merit of the project.
Paul Barrett, CEO of Southwind, said: “We are delighted to partner with First Uranium on this exciting project, with combined potential for two vital raw material streams – phosphates and rare earths. First Uranium’s participation will accelerate the development of this near-surface stratiform deposit. , located in the heart of the US Midwest, which has excellent potential to supply the agriculture and high-tech metals sectors, both of which are experiencing sustained, long-term growth in demand for raw materials. »
Letter of Intent Terms
Pursuant to the terms of the letter of intent, the Company will have the option to acquire 100% of the shares of Southwind by issuing up to 20,000,000 shares of the Company as follows:
|when entering into a definitive agreement|
|upon completion of an NI 43-101 report having a recommended minimum work program of at least US$2 million|
|upon completion of development/purchase agreements with owners|
In addition to the stock payments, the Company will be obligated to incur minimum work expenses of at least US$3 million within 12 months of the completion of the NI 43-101 report.
The Company will pay brokerage fees up to a limit of 2,000,000 shares in the event and as the Company exercises the option.
Lee R. Beasley, CPG is a Qualified Person under NI 43-101 and has read and approved the contents of this press release.
The Company is also announcing a private placement of subscription receipts for gross proceeds of up to $6,000,000 at a price of $0.35 per subscription receipt for an aggregate of up to 17,150,000 subscription receipts. Each subscription receipt is convertible into one common share and one-half share purchase warrant, each whole warrant being exercisable into one common share at a price of $0.50 per share. Proceeds from the subscription private placement will be used for exploration, acquisition and development work on the Company’s Arkansas project described herein. The conversion of the Subscription Receipts is subject to the Company entering into a definitive option agreement with the shareholders of Southwind and the proceeds from the sale of the Subscription Receipts will be held in escrow until the condition is satisfied.
The private placement of subscription receipts will be brokered by Emerging Equities Inc. of Calgary, Alberta and is expected to close on or about March 31, 2022.
About First Uranium
First Uranium is a resource exploration issuer focused on locating and exploring natural resource projects in North America. The Company has a project in Saskatchewan, Canada.
For more information, contact:
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This news the release includes certain statements that may be considered “forward-looking statements”. All statements in this news release, other than statements of historical fact, that discusses events or developments that the Company expects will occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “waits”, “plans”, “anticipates”, “believes“, ” to the intention of “, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would like”,
“may“, “could” or “should” happen. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include regulatory actions, market prices and the continued availability of capital and financing, as well as general economic, market or Business. Investors are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management as of the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements. in the case where management’s beliefs, estimates or opinions, or other factors, are expected to change.