Perth-based Western Uranium Ltd has employed Franco Bonavia and Bill Peters as consultants to its planned acquisition of advanced uranium exploration projects in Africa.
The full text of a company announcement is pasted below
Western Uranium Limited is pleased to announce that it has entered into an agreement with Mr Franco Bonavia and Mr Bill Peters to assist in the identification and acquisition of advanced uranium exploration projects in Africa.
Mr Bonavia is a very experienced and highly regarded geologist with extensive experience in exploration for uranium and other commodities in Africa. Among many other projects, he was responsible for a large part of a feasibility study on the Henkries Uranium Project in Namaqualand, South Africa. Mr Bonavia will provide his services on an exclusive basis to Western Uranium Limited for all of Africa, with the exclusion of Madagascar.
Mr Peters is principal of Southern Geoscience Consultants, one of the world's leading geophysical consultancies. Mr Peters has worked extensively in Africa with Mr Bonavia. Mr Peters will assist Mr Bonavia and Western Uranium on a non-exclusive basis.
It is a term of the agreement that if a project that is generated by the work of the Consultants is acquired by the Company the Consultants will receive AU$30,000 and will retain a 15% interest in the project that will be "free carried" until the date on which project finance is approved for the development of mining operations following completion of a bankable feasibility study.
Thereafter the Consultants' interest will become a contributing interest subject to certain cost and revenue sharing arrangements that apply until the Company has been fully repaid contributions made on behalf of the Consultants following the completion of the relevant
bankable feasibility study.
There is no limit to the number of projects that may be acquired under the agreement and the Company will have a pre-emptive right over the Consultants' 15% interest in any acquired project.
A monthly retainer will be paid to Mr Bonavia together with reimbursement of all agreed expenses. As part of the consideration the Consultants will participate in an Employee / Consultants Option Plan under which options, subject to shareholder approval and any ASX waivers as required, will be issued as follows: Mr Bonavia, 550,000; Mr Peters 450,000; Mr Shervington, 1,100,000; Mr Hansen, 1,500,000; Mr Pismiris, 900,000.
These options will be issued at an exercise price of $0.45 and will expire in December 2011. In addition, further options will be issued under the Plan as follows: Mr Bonavia, 550,000; Mr Peters, 450,000; Mr Hansen, 500,000.
These options will only be exercisable in the event that a project is acquired by the Company pursuant to the activities of the Consultants and will be issued at an exercise price that equates to a 30% premium to the previous 30 day volume weighted average price at the time of acquisition of the project.
It is a very strong vote of confidence that Mr Bonavia and Mr Peters have entered into this agreement with the Company. Progress has already been made in identifying potential uranium projects, and the Company looks forward to developing a successful uranium business in Africa.