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First Uranium Resources Ltd. has entered into a binding letter of intent for an option to acquire all of the shares of Southwind Corporation, a Delaware corporation, holding significant exploration and development properties in and around Independence County, Arkansas, United States of America.
First Uranium Resources will have the option to acquire 100% of the shares of Southwind by issuing up to 20 million shares of First Uranium Resources as follows:
In addition to the share payments, the company shall be obligated to incur minimum work expenditures of not less than $3 million USD within 12 months from the completion of the NI 43-101 Report.
The company will pay finder’s fees of up to 2.0 million shares in the event of and as and when the option is exercised by the company.
Southwind Corporation is an Arkansas based phosphate and heavy rare earth development project operated by experienced geologists and resource entrepreneurs; Paul Barrett and Erika Syba.
The project assets host high-grade, surface phosphate deposit highly enriched with heavy rare earth elements.
The deposit is made up of two strategic and critical products with strong demand growth. Phosphate and Heavy Rare Earth Elements. Phosphate prices are approaching 10 year highs. The project is near producing rock quarries and is therefore in close proximity to rail export and additional transport infrastructure.
Paul Barrett, CEO of Southwind, said “We are delighted to be partnering with First Uranium on this exciting project, with combined potential for two vital commodity streams – phosphates and rare earths. First Uranium’s participations will accelerate development of this near-surface stratiform deposit, situated in the heart of the US Midwest, which has excellent potential to feed into the agricultural and high-tech metals sectors, both of which are experiencing sustained and long-term growth in feedstock demand.”