Azincourt Energy Corp. [AAZ-TSXV; AZURF-OTCQB; A0U2-FSE] has signed a non-binding letter of intent (LOI) with Oberon Uranium Corp., an arms-length party, for a proposed transaction wherein Oberon would be granted an option to acquire the Escalera Group, a 100%-owned series of uranium-lithium exploration projects, located in southern Peru.
Under the terms of the LOI, Oberon has 90 days to conduct due diligence on the Projects, following which Oberon has the right to negotiate an option to acquire 100% interest in the projects from Azincourt by completing the following proposed payments and expenditures: $25,000 cash and 100,000 shares of Oberon upon signing a definitive agreement; $25,000 cash, 250,000 shares and $50,000 in work expenditures on or before the 12-month anniversary of the definitive agreement; $50,000 cash, 250,000 shares and $200,000 in work expenditures on or before the 24 month anniversary of the definitive agreement; $50,000 cash, 250,000 shares and $250,000 in work expenditures on or before the 36 month anniversary of the definitive agreement; and $100,000 cash, 250,000 shares and $500,000 in work expenditures on or before the 48 month anniversary of the definitive agreement;
For a total commitment of $250,000, 1,100,000 shares and $1,000,000 in work expenditures. During the term of the option, Oberon will be responsible for all costs and expenses associated with maintaining the Projects in good standing, including any required regulatory filings and maintenance fees.
Oberon Uranium is a private uranium company which has the option to acquire 100% of the Lucky Boy uranium project, a past-producing uranium mine in Arizona. Oberon also owns 100% of the Element 92 uranium project, which consists of approximately 6,000 hectares in the Athabasca region of northern Saskatchewan.
Azincourt Energy is currently active at its majority-owned joint venture East Preston uranium project, and its recently acquired Hatchet Lake uranium project, both located in the Athabasca Basin, Saskatchewan, and the Escalera Group uranium-lithium project, located on the Picotani Plateau, southeastern Peru.