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Strathmore Minerals Announces Sale of Juniper Ridge Property to Crosshair Exploration

Strathmore Minerals Corp. (TSX VENTURE:STM) has announced that its wholly owned subsidiary Strathmore Resources (US) Ltd. has entered into a Purchase and Sale Agreement with Crosshair Exploration & Mining Corp for the sale of its property known as "Juniper Ridge", located in south-central Wyoming.

The Juniper Ridge Property, also known as Red Creek, comprises 197 claims and one state minerals lease totaling 4,710 acres (1,906 Ha). It has historical resource estimates (not NI 43-101 compliant) of 5,971,000 tons grading 0.063% U308 for a total of 7,359,000 lbs (Urangesellschaft 1978) and 5.2 million tons grading 0.067% U3O8 for a total 6.97 million pounds (AGIP Mining Company 1986) The deposit was originally discovered by Urangesellschaft U.S.A., Inc. in the late 1970s.

Crosshair will acquire a 100% interest in the Juniper Ridge Property. The purchase will be staged and include payments in cash and common shares of Crosshair. The terms of the transaction as specified in the Agreement are summarized as follows:

  • Crosshair has paid Strathmore a US $25,000 non-refundable deposit. Crosshair shall pay Strathmore an additional US $175,000, due within two days of receipt of the Toronto Stock Exchange and TSX Venture Exchange approval of the Agreement, which is expected on or before November 15, 2010.
  • On the first anniversary of the Agreement, Crosshair shall pay Strathmore US $500,000: 50% to be paid in cash and 50% in common shares of Crosshair.
  • On the Second Anniversary of the Agreement, Crosshair shall pay Strathmore US $0.50 per pound of measured, indicated and inferred uranium resources, as determined by a National Instrument 43-101 technical report ("Technical Report"), to be prepared by Crosshair. If Crosshair has not prepared a Technical Report by the second anniversary, the uranium resources on the Juniper Ridge Property will be set at five million pounds. Should Crosshair prepare a Technical Report subsequent to the Second Anniversary of the Agreement, Crosshair shall make a payment of US $0.50 per pound, for each additional pound in excess of five million pounds; 50% of these payments to be paid in cash and 50% in common shares of Crosshair.
  • On the Third Anniversary of the Agreement, Crosshair shall pay Strathmore US $0.50 per pound of measured, indicated and inferred uranium resources, as determined by a Technical Report, to be prepared by Crosshair. If Crosshair has not prepared a Technical Report by the third anniversary, the uranium resources on the Juniper Ridge Property will be set at five million pounds. Should Crosshair prepare a Technical Report subsequent to the Third Anniversary of the Agreement, Crosshair shall make a payment of US $0.50 per pound, for each additional pound in excess of five million pounds; 50% of these payments to be paid in cash and 50% in common shares of Crosshair.
  • Upon receipt of all permits required for production, Crosshair shall pay Strathmore US $0.30 per pound of proven and probable uranium reserves as determined by a pre-feasibility or feasibility study. If Crosshair has not prepared a prefeasibility or feasibility study, the uranium reserves on the Juniper Ridge Property will be set at five million pounds. If permits have not been received by the sixth anniversary of the Agreement, Crosshair shall be required to make this payment as of that date. Payment will be made in cash and/or common shares of Crosshair, as elected by Strathmore.
  • Strathmore shall retain a 2% Gross Revenue Royalty on the property. Crosshair shall have the option to repurchase this royalty at any time during the first three years after commercial production commences for US $1.5 million for each 1% of the Gross Revenue Royalty.
  • Should Crosshair fail to make any of the scheduled payments, Strathmore shall be entitled to keep all payments made by Crosshair, and title to 100% of the property.

The Purchase and Sale Agreement completed and executed by Strathmore and Crosshair is subject to regulatory approval, including approval of the Toronto Stock Exchange and TSX Venture Exchange.

Further updates will be provided when available.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by David Miller, Chief Executive Officer for Strathmore Minerals Corp., a Qualified Person under National Instrument 43-101.

Source: Strathmore Minerals Corp.

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