Nov 27 2013
URU Metals Limited, which is 39.7% owned by NWT Uranium Corp. announced that they have entered into an agreement with their Joint Venture partner, Southern African Nickel Limited ("SAN"), to acquire 100% interest in SAN.
As a result of this purchase, URU now owns 100% interest in the Southern African Nickel Joint Venture ("SAN JV"). The SAN JV holds 74% interest in the Zebediela Nickel Project and 50% interest in the Burgersfort Nickel Project. URU will pay the shareholders of SAN US$1 and will pay the JVs current outstanding obligations of approximately US$185,000 to its operating consultant, Pangea Exploration, a non-arms length company to SAN.
"We see tremendous value in this nickel asset and a great opportunity to leverage the current commodity pricing," says NWT Uranium CEO David Subotic. "NWT Uranium is committed to monetizing this asset to enhance shareholder value."
Highlights
- URU has increased its interest in the Zebediela Nickel Project from 37% to 74% and in the Burgersfort Project from 25% to 50%
- Minimal consideration for a quality project
- Nearer to a resolution to arbitration as it re-establishes discussions with Umnex Mineral Holdings Limited, their BEE partner
"Investing actively in URU Metals and identifying it as an investment growth opportunity was always on the radar when we decided to increase our ownership in the company," says Subotic. "As NWT Uranium continues to work with the TSX, we will continuously seek out lucrative opportunities such as URU Metals to bring more value to shareholders."
Umnex Mineral Holdings Limited ("Umnex"), the South African BEE partner on the Zebediela Project holds the remaining 26% of the Zebediela Nickel Project through its interest in the SAN-Umnex Joint Venture. SAN and Umnex are currently in the middle of an arbitration process regarding the Zebediela Nickel Project over issues within the San-Umnex Joint Venture. Through this purchase, URU inherits SAN's interest in the arbitration process.
Source: http://www.urumetals.com/