Patronus Resources (ASX: PTN) has announced it has entered into a binding term sheet to sell its uranium exploration rights within its Northern Territory Project in the Pine Creek region to Greenvale Energy Limited (ASX: GRV). Patronus Resources is a West Australian and Northern Territory gold, base metals, and uranium development and exploration company, with a combined gold Mineral Resource exceeding 1.2 million ounces of gold. Upon completion of the transaction, Patronus will become a substantial shareholder in Greenvale, receiving a 19.6% shareholding valued at approximately A$5.5 million, alongside the right to maintain its equity and appoint Board representation.
Under the terms of the agreement, Patronus will grant Greenvale exclusive uranium exploration and development rights over the tenements for up to 20 years. Greenvale will issue 144,736,842 ordinary shares to Patronus at an issue price of A$0.038, making up the A$5.5 million consideration. Patronus will also have the right for 24 months to participate pro rata in any future equity capital raisings by Greenvale. Mr. Rowan Johnston, Patronus’s Non-Executive Chair, is proposed as a Non-Executive Director of Greenvale.
Patronus Resources’ Managing Director, John Ingram, commented that the sale would provide the necessary uranium exploration impetus for the region within a dedicated entity, allowing Patronus to sharpen its focus on its gold and base metal interests across the Pine Creek region. Completion of the transaction remains subject to several conditions, including the satisfaction of legal due diligence, Greenvale obtaining shareholder approval for the share issue, Patronus securing approvals and consents from its joint venture partners and other third parties, and both parties entering into a formal Uranium Rights Agreement, along with all necessary statutory and regulatory authorisations.
