UPDATE: Crosshair Up 5% as Moves to Acquire Uranium Assets From Australian American Mining
Crosshair Exploration & Mining Corp. (CXX.TO) is up 3 cents or 5% at 63 cents on news it has delivered a proposal to Australian American Mining Corporation Limited for the acquisition of AusAm's United States uranium assets, namely the Apex/Lowboy Project, Lone Star Project and Rio Puerco Project.
Crosshair has written directly to AusAm shareholders to outline their proposal and call on shareholders to support Crosshair's efforts to unlock the value in AusAm. Under the proposal, AusAm would receive consideration of US$12.85 million for the AusAm Uranium Assets payable in Crosshair shares. In return, Crosshair would acquire the AusAm Uranium Assets and be responsible for progressing them and enhancing their value.
"To date, the AusAm Board has failed to meaningfully engage with Crosshair in a substantive discussion for a proposal and has sought only to delay this proposal from moving forward. In Crosshair's opinion, despite owning some highly prospective uranium assets in North America, AusAm's Board has failed to adequately capitalise on the exploration and development of its assets. More worryingly, the AusAm Board does not have a realistic plan to halt the value destruction being experienced, despite demanding shareholders issue them options and pay them substantial salaries. Crosshair has lost confidence in the AusAm Board and its ability to deliver shareholder value. Crosshair believes AusAm shareholders are being denied the benefit of the true value locked up in AusAm. Crosshair thinks AusAm shareholders deserve better."
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