Premier American Uranium sells non-core Colorado assets to DISA, gains DISA as shareholder
Premier American Uranium (PUR) has agreed to sell all of its rights, title and interest in and to the Outlaw Mesa, Atkinson Mesa, Monogram Mesa and Slick Rock projects in Colorado to DISA Uranium for $2-million.
DISA Uranium is a new, well-capitalised American uranium production platform pursuing a supply chain growth strategy across conventional uranium production, remediation and recovery, and future domestic processing.
Its portfolio includes the permitted, past-producing Tony M, Daneros and Rim mines and the Sage Plain and Flatiron projects in Utah, complemented by its proprietary HPSA technology and NRC-licensed abandoned uranium mine remediation and recovery platform.
PUR will receive the consideration in DISA shares and warrants, which effectively monetises the noncore Colorado assets while retaining exposure to their future development. DISA also plans to make a strategic equity investment in subscription receipts of PIR for aggregate proceeds of $5-million. The deal will result in DISA holding an 8.7% ownership interest in PUR at a 41.5% premium to PUR’s share price.
DISA will have the right to nominate one director to PUR’s board, which it has nominated to be DISA CEO Greyson Buckingham.
PUR says through its equity position in DISA, shareholders will gain exposure to a well-capitalised US uranium platform backed by $105-million of financing and leading mining, energy and technology investors, coupled with conventional uranium assets, proprietary recovery technology and a licensed remediation business.
PUR remains focused on developing its core Cebolleta, Kaycee and Cyclone projects. Cebolleta is located in New Mexico while the Kaycee and Cyclone projects are based in Wyoming.