US-based DISA Acquires Four Uranium Projects and Invests US$5 Million

en.Wedoany.com Reported - On September 15, Canada's Premier American Uranium announced the signing of an asset purchase agreement and a strategic investment arrangement with DISA Uranium of the United States. Under the agreement, DISA will acquire Premier American Uranium's four uranium projects in Colorado, USA—Outlaw Mesa, Atkinson Mesa, Monogram Mesa, and Slick Rock—for total consideration of approximately US$2 million; at the same time, DISA will invest US$5 million in Premier American Uranium and is expected to hold approximately 8.7% of the latter's equity after the transaction closes.

The consideration for the four Colorado projects will be paid in DISA shares and an equal number of warrants, with Premier American Uranium to receive 25,413 DISA shares valued at US$2 million, as well as warrants to subscribe for a further 25,413 shares. The US$5 million strategic investment will be made through the subscription for Premier American Uranium subscription receipts at a price of C$0.75 per receipt, representing a 41.5% premium to the company's closing share price on September 14.

Upon completion of the transaction, DISA will also obtain rights to participate in Premier American Uranium's future financings, subject to meeting shareholding threshold requirements, and will be entitled to nominate one director to the company's board. The asset transaction remains subject to regulatory approvals, including from the U.S. Department of Energy, and the satisfaction of closing conditions for the US$5 million equity investment. The funds will subsequently be used for exploration and development of Premier American Uranium's core uranium projects and for working capital.

DISA is currently consolidating uranium resources in the western United States, historical mine remediation, and downstream processing capabilities. Its asset portfolio includes historically producing mines such as Tony M, Daneros, and Rim in Utah, as well as the Sage Plain and Flatiron projects. The company recently completed a US$105 million private placement financing. Following the sale of its Colorado assets, Premier American Uranium will further focus its development efforts on core uranium projects including Cebolleta in New Mexico and Kaycee and Cyclone in Wyoming.