Global Resources Investment Limited has provided $1 million in financing to European Uranium Resources, Ltd. Under terms of the transaction, GRIT is buying 8 million shares of EUU at $0.125 per share. As a result, GRIT will own approximately 13% of EUU. European Uranium Resources is a Europe-based uranium exploration and development company while GRIT is an investment firm that focuses on the junior mining and natural resources industries.
VANCOUVER, British Columbia–(BUSINESS WIRE)–European Uranium Resources, Ltd. (EUU: TSX-V; EUUNF: OTCQX; TGPN: Frankfurt) has arranged a $1.0 million financing through Global Resources Investment Limited (GRIT). GRIT has been established to exploit investment opportunities in the junior mining and natural resources sectors worldwide, with an investment objective to generate medium and long-term capital growth. GRIT has advised that they will shortly be re-registering as a public company and will be constituted as an investment trust with the name Global Resources Investment Trust Plc and is seeking admission of its ordinary shares on the main market for listed securities on the London Stock Exchange.
GRIT is acquiring 8 million shares of EUU at a price of $0.125 per share and will own approximately 13% of EUU after this transaction. These EUU shares will be subject to a 4-month hold period. The consideration to EUU will be 604,485 shares of GRIT, at a deemed price of ₤1.00 per share, for a value of approximately $1.0 million. This transaction is conditional on the trust closing its initial financing and becoming listed on the London Stock Exchange. GRIT expects to be listed within the coming weeks.
EUU will arrange to sell GRIT shares from time to time in accordance with applicable securities laws in order to generate cash, which will be used to advance the Company’s Kuriskova uranium project in Slovakia and for working capital and general corporate purposes.
A 6% commission is payable in GRIT shares in respect of this transaction.
Under the terms of its 2011 Private Placement into EUU, AREVA has the right during the next 30 days to elect to purchase additional shares of EUU on the same terms as this financing in order to maintain its current percentage ownership (7.3%) in the Company. This would represent 585,846 shares at a value of $73,231.
Closing of the transaction is subject to GRIT successfully listing on the London Stock Exchange and TSX Venture Exchange approval.
About European Uranium Resources Ltd.
European Uranium Resources Ltd. is a dedicated European uranium exploration and development company that has built a portfolio of outstanding projects in Slovakia. European Uranium is well placed to become the key uranium exploration and development company in Europe. Europe is the world’s largest per capita consumer of uranium with 160 reactors and more under construction or planned, but with only one currently operating uranium mine. The Company’s Kuriskova Project in Slovakia could be one of the world’s lowest cost uranium producers. European Uranium has a strong base of supportive shareholders including AREVA, ranked first in the global nuclear power industry and a key player in uranium mining and nuclear operations on a world-wide basis.