Mar 11 2014
POWERTECH URANIUM CORP. ("Powertech" or the "Company") is pleased to announce that Azarga Resources Limited ("Azarga"), its largest shareholder and party to the announced reverse take-over of Powertech, has had its strategic stake in Anatolia Energy Limited ("Anatolia") increased to 15.1% of Anatolia's outstanding shares as a result of Anatolia exercising the first tranche of the put option agreement with Azarga.
Anatolia, 100% owner of the high grade Temrezli Uranium Project in Turkey, previously announced the put option agreement with Azarga on September 17, 2013 and announced exercise of the first tranche of the put option on February 28, 2014. The put option agreement entitled Anatolia to issue 16,666,667 shares to Azarga at A$0.12 per share in two tranches for gross proceeds of A$2.0 million subject to the completion of certain milestones at the Temrezli Uranium Project. Anatolia has completed these project milestones and consequently exercised the first tranche of the put option agreement issuing 8,333,333 shares of stock for A$1.0 million. The second and final tranche of the put option agreement may be exercised at Anatolia's discretion anytime between March 31, 2014 and December 31, 2014.
Richard F. Clement, Jr., President of Powertech, stated: "The Temrezli Uranium Project is a premier ISR opportunity. The continued increased involvement of Azarga in Anatolia will strengthen our company following the proposed merger. For Azarga to be involved worldwide in key uranium opportunities speaks well of their confidence in the future of our industry."
On February 26, 2014, Powertech announced that it had entered into a share purchase agreement with Azarga pursuant to which Powertech will acquire all of the issued and outstanding common shares of Azarga in exchange for common shares of Powertech (the "Transaction"). Upon completion of the Transaction, Azarga would become a wholly-owned subsidiary of Powertech and the current Azarga shareholders would become Powertech shareholders holding approximately 77% of the Powertech Shares.
Key benefits of the Transaction include increased scale, increased diversification, an enhanced management and board of directors and financial stability and strategic investors. The Transaction has been unanimously approved by the board of directors of both Powertech and Azarga. Completion of the Transaction is expected to occur before July 31, 2014 and is conditional upon, among other things, receipt of all required approvals including approval of the shareholders of Powertech and approval of the Toronto Stock Exchange.
Source: https://encoreuranium.com/