Cazaly Resources Ltd has announced the sale of its uranium assets to Southern Cross Uranium Ltd.
Cazaly Resources Ltd has announced the sale of its uranium assets to Southern Cross Uranium Ltd.
Southern Cross plans to raise $3 million via an IPO and apply for listing on the ASX.
Southern Cross was formed with the aim to build a uranium exploration and production company with assets both in Australia and overseas.
The agreement with Cazaly allows Southern Cross the ability to commence this process with a portfolio of projects situated across highly prospective ground in Western Australia and the Northern Territory.
The projects include the Lake Way Project which is situated just 1.5 kilometres north of Nova Energy Limited's Lake Way uranium deposit in Western Australia.
The terms of the Agreement include an Option Payment of $25,000 with Southern Cross having the right to exercise the Option to acquire an initial 35 per cent interest with additional farm-in rights to 80 per cent of the Projects by:
* Payment of a further $75,000 upon listing
* Issuing Cazaly 10 million shares in Southern Cross
Following the Option exercise, Southern Cross must complete $1m of expenditure over 5 years on each of the Projects to earn its full 80 per cent interest.
Also, Cazaly intends, subject to shareholder and regulatory approvals, to make an in-specie distribution of the 10 million Southern Cross shares to its shareholders approximately 6 months after Southern Cross lists on the ASX.
Southern Cross has made available a limited priority allocation to Cazaly shareholders to subscribe Southern Cross shares.
THE FULL ASX RELEASE APPEARS BELOW.
ASX Release
DIVESTMENT OF URANIUM ASSETS
Cazaly Resources Limited (ASX: CAZ) is please to announce the divestment of its uranium assets
to Southern Cross Uranium Limited ("Southern Cross"). Southern Cross plans to raise $3 million
via an IPO and apply for listing on the ASX.
The terms of the Agreement include an Option Payment of $25,000 with Southern Cross having
the right to exercise the Option to acquire an initial 35% interest with additional farm-in rights to
80% of the Projects by:
* Payment of a further $75,000 upon listing
* Issuing Cazaly 10 million shares in Southern Cross
Following the Option exercise, Southern Cross must complete $1m of expenditure over 5 years on
each of the Projects to earn its full 80% interest.
It is the intention of Cazaly, subject to shareholder and regulatory approvals, to make an in-specie
distribution of the 10 million Southern Cross shares to its shareholders approximately 6 months after
Southern Cross lists on the ASX.
Southern Cross has made available a limited priority allocation to Cazaly shareholders to
subscribe Southern Cross shares pursuant to a prospectus to be lodged with the ASIC shortly.
Shareholders will be sent further details in a letter together with instructions on how to apply for
shares in Southern Cross once a Prospectus has been finalised.
Southern Cross was formed to acquire, explore, evaluate and exploit uranium mineralisation over
its projects with the aim to systematically build a uranium exploration and production company with
assets both in Australia and overseas.
The agreement with Cazaly allows Southern Cross the ability to commence this process with a
portfolio of projects situated across highly prospective ground in Western Australia and the
Northern Territory. The projects include the Lake Way Project which is situated just 1.5 kilometres
north of Nova Energy Limited's Lake Way uranium deposit in Western Australia.
