Consolidated Uranium Inc.’s [CUR-TSXV; CURUF-OTCQB] shareholders have approved the previously announced proposed spinout of Labrador Uranium Inc. Labrador Uranium is currently a majority-controlled subsidiary of Consolidated Uranium focused on the consolidation, exploration and development of uranium projects in Labrador.
At the special meeting of Consolidated Uranium shareholders held virtually, a special resolution approving the arrangement was approved by 99.78% of the votes cast by Consolidated Uranium shareholders present virtually or represented by proxy at the meeting.
Completion of the arrangement is subject to the satisfaction or waiver of certain other customary closing conditions, including court approval. The court hearing for the final order to approve the arrangement is scheduled to take place on February 7, 2022. If completed, the arrangement will result in, among other things, Consolidated Uranium transferring ownership of its Moran Lake project to Labrador Uranium in exchange for 16 million common shares of Labrador Uranium, which Labrador Uranium common shares will be distributed to Consolidated Uranium shareholders on a pro rata basis pursuant to the provisions of the plan of arrangement.
Consolidated Uranium shareholders must hold their Consolidated Uranium common shares until 12:01 a.m. on the effective date of the arrangement to receive their pro rata portion of the Labrador Uranium common shares being distributed pursuant to the arrangement.
Labrador Uranium has applied to list the Labrador Uranium common shares on the on the Canadian Securities Exchange following completion of the arrangement. Listing is subject to the approval of the CSE. Completion of the arrangement and listing of the Labrador Uranium common shares on the CSE are expected by the end of February, 2022.
Consolidated Uranium was created in early 2020 to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation. To date, the company has acquired or has the right to acquire uranium projects in Australia, Canada, Argentina and the United States, each with significant past expenditures and attractive characteristics for development. Most recently, the company completed a transformational strategic acquisition and alliance with Energy Fuels Inc. [EFR-TSX; UUUU-NYSE American], a leading United States-based uranium mining company, and acquired a portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah and Colorado. These mines are currently on standby, ready for rapid restart as market conditions permit, positioning Consolidated Uranium as a near-term uranium producer.