TORONTO, June 26, 2019 (GLOBE NEWSWIRE) -- Mega Uranium Ltd. (MGA: TSX) announces that it has sold its royalty on the Langer Heinrich uranium project in Namibia (the “Royalty”) to Uranium Royalty Corp. (“URC”) for $1,625,000, following the exercise by URC of its option on the Royalty. URC issued special warrants to Mega in payment of the purchase price, which are automatically exercisable for common shares of URC upon the earlier of four months and one day from issuance and completion of a going public transaction.
The Royalty is AUS$0.12 for each kilogram of yellowcake (U308) produced and sold from the Langer Heinrich property by certain subsidiaries of Paladin Energy Ltd and was acquired by Mega in 2006 as part of its acquisition of Redport Limited.
Mega also announces that it has made an additional equity investment of $750,000 in URC, as part of a larger special warrant financing completed by URC. The special warrants acquired by Mega under the private placement financing and as consideration for the Royalty, together with the common shares of URC previously acquired by Mega, represent approximately 7.5% of the outstanding common shares of URC, on a partially-diluted basis assuming the exercise of all of the special warrants held by Mega.
ABOUT MEGA URANIUM LTD.
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia and Canada and a portfolio of equity investments in uranium-focused public and private companies. Further information on Mega can be found on the company’s website at www.megauranium.com.
For further information please contact:
Mega Uranium Ltd.
Chief Executive Officer and President
T: (416) 643-7630
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES