Strathmore Minerals completes Pine Tree-Reno Creek sale to Bayswater Uranium

Strathmore Minerals Corp (TSX-V: STM) has completed the sale of its Pine Tree-Reno Creek properties in Wyoming to Bayswater Uranium Corp (TSX.V: BYU), receiving gross proceeds of US$17.5 million in cash and another US$2.5 million in Bayswater shares.

Strathmore will retain a 5% gross production royalty, which can be repurchased at any time by Bayswater for US$2 million consisting of US$1 million in cash and another US$1 million in shares per 1% royalty reduction. The company now owns 4.4 million shares in Bayswater representing some 19.9% of the capital, which it intends to use for investment purposes.

The sale is expected to boost Strathmore’s current working capital position to C$29 million, giving it the funds to advance its uranium projects, including Roca Honda in New Mexico and Gas Hills in Wyoming.

Bayswater had to compete with an undisclosed foreign bidder, which put forward its offer in January. The company decided to match the competing offer after being given seven days to either do that or complete the existing transaction, which had been agreed on prior to the receipt of the superior offer. Bayswater pledged to move forward “aggressively” to finance the acquisition.

Reno Creek has an NI43-101 compliant measured and indicated resource of 5.68 million tonnes grading 0.065% U3O8 (uranium) for a total 7.43 million lbs (pounds) of uranium and an inferred resource of 2.63 million tonnes grading 0.065% for 3.4 million lbs. Pine Tree has a historical measured and indicated resource of 1.95 million tonnes grading 0.07% for 2.65 million lbs and an inferred resource of 625,000 tonnes grading 0.06% for 0.75 million lbs.

http://www.proactiveinvestors.com.au/companies/news/6304/strathmore-minerals-completes-pine-tree-reno-creek-sale-to-bayswater-uranium--6304.html