Clermont, NexGen amalgamation LOI follows NexGen, Mega Uranium property acquisition definitive agreement
(Update: With the reverse takeover of Clermont Capital complete, NexGen Energy Ltd TSXV:NXE began trading on April 23, 2013.)
Clermont Capital Inc TSXV:XYZ.P announced a letter of intent on November 30 to acquire NexGen Energy Ltd. The arrangement would involve a three-cornered amalgamation in which a Clermont subsidiary amalgamates with NexGen to create a new Clermont subsidiary. The capital pool company intends the acquisition as a qualifying transaction to become a TSXV Tier-2 issuer.
Currently NexGen’s key asset is the Radio uranium project in northern Saskatchewan’s Athabasca Basin. NexGen holds an option to acquire an initial 70%, then the remaining 30% subject to a 2% NSR. Exploration has identified drill targets that are interpreted to be on the same structural trend as Rio Tinto’s Roughrider deposits and Fission Energy’s TSXV:FIS J-Zone. Roughrider holds resources of 17.2 million pounds U3O8 indicated and 40.7 million pounds inferred, while the J-Zone holds 7.37 million pounds indicated and 1.51 million pounds inferred. (Update: The J-Zone’s December 6, 2012 resource now shows 10.28 million pounds indicated and 2.74 million pounds inferred.) NexGen plans drilling in Q1 2013.
On November 15 NexGen announced a definitive agreement to purchase the majority of Mega Uranium’s TSX:MGA Canadian projects in the Athabasca Basin and Nunavut’s Thelon Basin. As a result, Mega is anticipated to acquire up to a 38% interest in NexGen.
Among the conditions for the Clermont-NexGen acquisition, NexGen would close a private placement of at least $6.6 million. Prior to closing the acquisition, Clermont would consolidate its shares on a 2.35-for-one basis. On closing, NexGen shareholders would receive one post-consolidation Clermont share for each NexGen share.
Clermont president/CEO/director Arlen Hansen tells ResourceClips, “It’s a very large land package and uranium exploration takes a lot of time and money, so we’re getting the NexGen operational team, which includes some ex-Rio Tinto guys and Leigh Curyer, who raised hundreds of millions of dollars for Southern Cross before it was taken out in the uranium sector as well.
“So there’s good money and a good technical team coming behind the deal. And it’s happening when the market’s clearly hungry for a discovery. It sure looks like Fission and Alpha have something to be excited about. We hope that we can be part of that ride as well.”
by Greg Klein