Pancon Receives Deposit as Part of the Sale of its Interest in the Crossland Joint Venture
TORONTO, ONTARIO--(Marketwired - April 1, 2015) -
NOT FOR DISSEMINATION INTO THE USA
Pancontinental Uranium Corp. (TSX VENTURE:PUC) ("Pancon" or the "Company") is pleased to announce that it has received the deposit of AUD $450,000 as part of the sale of its entire interest (43.72%), held by the Company's wholly-owned subsidiary, Panconoz Pty Ltd., in the Joint Venture (the "JV") with Crossland Strategic Metals Ltd. ("Crossland") of Australia, which was previously announced on January 15th of this year.
The definitive purchase and sale agreement (the "PSA") is with Essential Mining Resources Pty Ltd. ("EMR" or the "Purchaser") for the extensive Charley Creek rare earth element (REE) project, as well as a number of prospective uranium properties in the Northern Territory of Australia. EMR is a private Australian-based company which is 100%-owned by EMMCO Mining Sdn Bhd ("EMMCO"), a private Malaysian company beneficially held by a consortium of South East Asian investors.
As reported on January 15, 2015, the PSA provides for the following consideration for Pancon:
- Cash payments totaling AUD $2,550,000, which includes the deposit of AUD $450,000; and
- A Gross Overriding Royalty of one percent (1%) on sales of production from 100% of the property.
UPDATE:
Of the AUD $450,000 received by the Company, AUD $164,109.25 was paid to Crossland in full settlement of Pancon's debt to Crossland pursuant to the PSA.
Pancon has received shareholder approval of the transaction through written consent from shareholders representing more than 50% of the issued shares of the Company and obtained preliminary approval from the TSX Venture Exchange.
EMR's due diligence period has been extended to April 20, 2015. Subject to EMR's due diligence, the transaction is expected to close between April 30, 2015 and the end of July 2015.
Closing of the PSA transaction includes the following conditions:
- Completion of due diligence by EMR; and
- Receipt of approvals pursuant to the Minerals Titles Act of the Northern Territory, Australia. (The deposit is refundable to EMR if these approvals are not received).
Pancon President and CEO Rick Mark states, "This transaction enables Pancon shareholders to capitalize on our exploration success at Charley Creek; it provides the Company with a cash injection and the ability to benefit from all future production. This sale has been accomplished in a very difficult mining market and allows the Company to pursue other opportunities immediately."
About Pancontinental Uranium Corporation
Pancontinental Uranium Corp. is a Canadian-based company that has been focused on rare earth elements (REE) and uranium discovery and development. Through a joint venture with Crossland Strategic Metals Ltd. of Australia, the combined management and operating team has unparalleled experience from exploration, through development to operations. Pancon and Crossland hold an impressive REE and uranium exploration portfolio with projects in prolific, mining friendly districts in NT, Australia. Exploration has primarily occurred on two projects, known as Charley Creek and Chilling.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authorities.
Contact
Pancontinental Uranium Corp.
Rick Mark
President and CEO
416 293 3957
416 293 8437
www.Panconu.com