Vancouver-based Mawson Resources is to acquire Areva's Finnish uranium exploration portfolio in a deal that will see Areva become a lead shareholder in the Canadian company.
The agreement will see Mawson acquire 100% of Areva's Finnish uranium exploration portfolio and a database developed over 10 years of exploring for uranium in the country, for which it will pay Areva €1 million ($1.3 million). For its part, Areva will subscribe, via a private placement, for 4,696,698 common shares in Mawson at a price of $0.29 for a total purchase price €1 million. In addition, it will receive a further 4,217,012 purchase warrants, exercisable for four years, to purchase an equivalent number of Mawson common shares for $1.00 per share.
The deal will see Areva become one of Mawson's biggest shareholders with 11% of the company and the right to increase that to 19% through the purchase warrants. The French company was welcomed on board by Mawson president and CEO Michael Hudson. "This transaction effectively doubles Mawson's exploration portfolio and cements Mawson's place as a key European uranium explorer," he said.
Approximately 16,156 hectares of exploration areas in south eastern and north central Finland, secured by claims or claim applications, are involved in the transaction. Finland's Talvivaara Mining recently applied to extract uranium as a by-product at the Talvivaara nickel and zinc mine in eastern Finland.
Mawson bills itself as a European-focused uranium exploration company, with interests predominantly in Sweden and Finland. It also has uranium interests in Spain.
Researched and written
by World Nuclear News