Myriad Uranium to acquire Rush Rare Metals in share exchange deal

Myriad Uranium Corp. [M-CSE, MYRUF-OTCQB, C3Q-FSE] has signed a definitive deal to acquire 100% of the issued and outstanding shares of Rush Rare Metals Corp. [RSE-CSE] pursuant to a statutory plan of arrangement.

Myriad and Rush are parties to a property option agreement dated October 18, 2023, as amended, under which Myriad has earned a 75% interest in the Copper Mountain uranium project in Wyoming, U.S.A., by incurring $5.5 million in eligible expenditures on the property.

Believing that unified ownership of Copper Mountain is significantly more valuable than the aggregate values of separate ownership, the boards of directors of Myriad and Rush have determined that a merger is in the best interests of shareholders of both companies, and that the merger is also the fastest and most efficient way to unify ownership of Copper Mountain in Myriad. They have also determined that consolidating ownership of Copper Mountain greatly simplifies and streamlines ongoing operations and decision making in relation to the project.

Under the agreement, Myriad will issue one common share for every 1.85 Rush shares that are issued and outstanding, resulting in an exchange ratio of one Rush share to 0.5405 Myriad share. In addition, all of Rush’s convertible securities will be replaced with Myriad convertible securities exercisable for Myriad shares, with appropriate adjustments made to reflect the exchange ratio.

On Friday, Rush shares were unchanged at 21.5 cents and trade in a 52-week range of 30 cents and $0.08. Myriad was also unchanged at 44 cents. The shares trade in a 52-week range of 59 cents and 21.5 cents.

A special meeting of Rush shareholders to approve the arrangement is expected to be held before May, 2026. Meanwhile, all directors and officers of Rush, as well as certain Rush shareholders have agreed or will agree to vote their shares in favour of the arrangement.

Copper Mountain hosts several known uranium deposits and historic uranium mines, including the Arrowhead mine, which produced 500,000 pounds of U308. Copper Mountain saw extensive drilling and development by Union Pacific during the late 1970s, including the development of a mine plan to fuel a planned fleet of California Edison reactors.

Operations ceased in 1980 before mining could commence due to falling uranium prices. Approximately 2,000 bore holes have been drilled at Copper Mountain, and the project has significant exploration upside. Union Pacific is estimated to have spent $117 million (2024 dollars) exploring and developing Copper Mountain, generating significant historical resource estimates.

Myriad also holds a 100% interest in the Red Basin Uranium Project in New Mexico, which has near-surface mineralisation, with significant upside potential, the company has said. Rush has incorporated a subsidiary, (Rush Spinco) to which the company will transfer all of its rights and title and interests in the Boxi Property in Quebec.