UNITED URANIUM SIGNS TERM SHEET WITH SHANDONG NO 1.
INSTITUTE OF GEOLOGY AND MINERALS EXPLORATION
United Uranium Limited (ASX: UUL; the “Company” or “United”) is pleased to announce it has signed a Term Sheet (“Term Sheet”) with Shandong No.1 Institute of Geology and Minerals Exploration (“SDGM”), who has a State sanctioned mandate to actively source a variety of minerals throughout the world to support China’s, and in particular Shandong Provinces
industries and economic growth. The signing of the Term Sheet follows visits by representatives of SDGM earlier in the year, ongoing discussions and negotiations, culminating in the signing ceremony in Perth on 24 September 2010.
The key commercial terms of the Term Sheet are as follows:-
SDGM and or its nominees is able to subscribe for up to 5,600,000 shares in the Company
at an issue price of 21 cents per share
for total consideration of up to $1,176,000;
On completion of the above share placement SDGM have the right to nominate one
director to the Board;
SDGM having first right of refusal to participate in future capital raisings to earn up to a
maximum interest of 51% in the issued capital of United (subject to any FIRB approval,
ASX, shareholder or regulatory approvals required both in Australia and China);
SDGM can earn up to a 50% interest in the following tenements EL24815, EL25835,
EL25838, EL25839, ELA25836 and ELA25840, collectively referred to as the (“Tenements”)
by spending a minimum of $ 3 million in total on the Tenements. The percentage earnt
will be based on the following milestones:-
An initial 20% interest by spending $1 million on the Tenements;
An additional 20% interest by spending a further $1 million on the Tenements; and
An Additional 10% interest by spending a further $1 million on the Tenements.
A payment of $100,000 by SDGM within 7 days of the signing of the Term Sheet, which is
non refundable if a definitive Farmin Agreement is not executed within 30 calendar days
of the signing of the Term Sheet.