The funds will be applied to accelerate exploration at Northern Uranium’s Gardiner-Tanami uranium project for the discovery of large, high grade, high value unconformity-related uranium deposits. Numerous heavy rare earths projects will also be boosted.
Subject to ECE due diligence, necessary regulatory and shareholder approvals, ECE will subscribe for 108 million Northern Uranium shares at A$0.145 per share, representing a 58% premium to the one month VWAP of Northern Uranium shares to and including 4 August 2010. Upon completion of the transaction, ECE will possess 51% shareholding in Northern Uranium.
Commenting on the strategic alliance with this major mineral exploration, development and mining group in China, Managing Director of Northern Uranium Mr George Bauk said he welcomed ECE’s investment, exploration experience and skills and looks forward to building a relationship with ECE as a cornerstone shareholder.