UCR Agrees to Sell Property Claims in Northern Saskatchewanadmin
Uranium City Resources Inc., announce it has entered into a letter agreement with Red Rock Energy Ltd. whereby Red Rock has agreed to purchase all of UCR’s exploration property claims located in northern Saskatchewan.
Red Rock is a junior exploration corporation with property interests in northern Saskatchewan. The purchase price for the Claims of $975,000 will be paid by Red Rock as follows:
– $75,000 to be paid to UCR in cash upon completion of the transaction (the “Transaction”); and
– $900,000 to be paid to UCR at the option of Red Rock in cash or by the issuance of 5 million common shares of Red Rock from treasury at a deemed price of $0.18 per common share.
The Claims are subject to an option agreement between UCR and GLR Resources Inc. (“GLR”), made as of November 22, 2004, under which GLR has a preemptive right to purchase the Claims on the same terms and conditions as those proposed by Red Rock. Completion of the Transaction is conditional on the receipt from GLR of a written waiver of its preemptive right.
The parties’ obligations to complete the Transaction are also subject to the satisfaction of the usual conditions for transactions of this nature, including the receipt of all regulatory approvals, shareholder approval, and the completion of a satisfactory due diligence review by Red Rock.
No finder’s fee will be payable in connection with the Transaction.