Athabasca selling Yellowjacket Gold Project to African Queen Mines

Canadian uranium exploration company Athabasca Nuclear Corp. said on Thursday that it will sell its Yellowjacket Gold Project to African Queen Mines, Ltd.

The proposed transaction includes the payment of approximately $121,773 in cash and two million common-share warrants -- split between those exercisable at 5 cents and 10 cents per share over a period of three years -- to Athabasca.

"By monetizing a legacy asset which we empirically believe the market was assigning no material value to in exchange for cash, equity exposure to African Queen and potential contingent event payments, Athabasca Nuclear is able to focus its managerial and financial resources on core projects," Athabasca CEO Ryan Kalt said. "The nature of a permitted gold project with its related obligations is best handled by an entity focused on gold as their primary commodity."

African Queen also will be responsible for payment of 50 percent of net earnings made through the sale of equipment at the Yellowjacket Gold project within five years of the sale's closing date. If the project is reclaimed in its entirety, a one-time payment of approximately $81,162.26 will be made to Athabasca.

Finalization of the deal is contingent on regulatory approvals, which include the TSX Venture Exchange. The company said the transaction is likely to be finalized by July 30.

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African Queen Mines, Ltd Athabasca Nuclear Corp

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