VANCOUVER, BC, Jan. 6, 2021 /CNW/ - International
Consolidated Uranium Inc. ("CUR" or the "Company")
(TSXV: CUR) is pleased to announce that it has entered into an
agreement (the "Termination Agreement") with Meliadine Gold
Ltd. ("MGL") to terminate the existing amended and restated
earn-in agreement (the "Earn-In Agreement") dated
February 2, 2017 between the Company
and MGL relating to the Kuulu Gold Project in Nunavut.
The key terms of the Termination Agreement are:
- Termination Payment - CUR is entitled to receive a
termination payment from MGL, payable through the issuance of
2,000,000 shares of MGL
- Private Placement - CUR has agreed to purchase
1,500,000 units of MGL ("Units") at a price of $0.10 per Unit for aggregate consideration of
$150,000. Each Unit is comprised of
one common share and one half warrant exercisable at $0.10 per share for a period of one year from
closing subject to acceleration in the event that MGL receives a
land use permit
- Equity Participation Right - CUR has been granted a
right to participate in future equity financings of MGL in order to
maintain its pro rata equity position in MGL for so long as CUR
holds at least 10% of MGL's issued and outstanding shares
- Board Nomination Right - CUR has been granted the
right to nominate one director to the board of directors of MGL for
so long as CUR holds at least 10% of MGL's issued and outstanding
shares
- Right of First Offer - CUR has been granted an
exclusive right of first offer ("ROFO") in respect of any
joint venture or earn-in agreement for the Kuulu Project
Philip Williams, President and
CEO commented, "We are very pleased to have entered into this
agreement with Meliadine Gold Ltd. which we believe is a good
outcome for both groups but more importantly positions the Kuulu
Project for future advancement. The Earn-In Agreement was the
cornerstone for NxGold Ltd., the former name of the Company,
however, due to continued delays in the renewal of the existing
land use agreement the Earn-In Agreement was put into force majore
thereby preventing the Company from earning its potential interest
in the Kuluu Project. The Termination Agreement gives CUR the
ability to secure up to a 20% equity interest in MGL with important
rights to maintain this interest and oversee the future progress of
the Kuluu Project. The MGL team has a long history with the project
and area and we are optimistic they can make progress on the land
use renewal permit in due course."
Glen Dickson, President and CEO
of Meliadine Gold Ltd commented, "I am pleased to welcome
International Consolidated Uranium as a shareholder of Meliadine
Gold. Both groups recognize the potential of the project but also
that the path forward requires a patient and focused approach which
the team at MGL is well equipped to undertake."
About International Consolidated Uranium
International Consolidated Uranium Inc. (formally, NxGold Ltd.)
is a Vancouver-based exploration
and development company. The Company has entered option agreements
to acquire five uranium projects in Australia, Canada and Argentina each with significant past
expenditures and attractive characteristics for development: with
Mega Uranium Ltd. (TSX: MGA), the right to acquire a 100% interest
in the Ben Lomond and Georgetown
uranium projects in Australia;
with IsoEnergy Ltd. (TSXV: ISO), the right to acquire a 100%
interest in the Mountain Lake uranium project in Nunavut, Canada; with a private individual,
the right to acquire a 100% interest in the Moran Lake uranium and
vanadium project in Labrador,
Canada; and with U3O8 Corp. (TSXV: UWE.H), the right to
acquire a 100% interest in the Laguna Salada uranium and vanadium
project in Argentina. The Company
entered into the Mountain lake option agreement with IsoEnergy on
July 16, 2020, and the transaction
remains subject to regulatory approval, as does the transaction
with U3O8 Corp. on the Laguna Salada Project. In addition, the
Company owns 80% of the Mt. Roe gold project located in the Pilbara
region of Western Australia and an
equity interest in Meliadine Gold Ltd. the owner of the Kuulu Gold
Project (formerly known as the Peter Lake Gold Project) in
Nunavut.
Neither TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to,
statements with respect to activities, events or developments that
the Company expects or anticipates will or may occur in the future
including future advancement of the Kuluu Project. Generally, but
not always, forward-looking information and statements can be
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes" or the negative connotation
thereof or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved" or the negative
connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including that general business and economic
conditions will not change in a material adverse manner, that
financing will be available if and when needed and on reasonable
terms, and that third party contractors, equipment and supplies and
governmental and other approvals required to conduct the Company's
planned exploration activities will be available on reasonable
terms and in a timely manner. Although the assumptions made by the
Company in providing forward-looking information or making
forward-looking statements are considered reasonable by management
at the time, there can be no assurance that such assumptions will
prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to update or reissue forward-looking information as a
result of new information or events except as required by
applicable securities laws.
Reader should also be cautioned that where reference is made to
mineralization of adjacent or near-by properties it is not
necessarily indicative of mineralization hosted on the Company's
Property.
SOURCE International Consolidated Uranium Inc.
