THE Company U308 looking for uranium in Guyana has entered into an agreement with Minexco a mining company operating at Tamakay, Mazaruni in Region 7 (Cuyuni/Mazaruni) whereby it is handing over some of its non-core exploration properties to Minexco in exchange for shares. U 308 announced the swap earlier this week saying that Minexco will issue up to nine million shares (approximately 13% of shares outstanding) to U3O8 Corp. at a deemed price of Cdn$0.30 per share (the “Minexco Shares”) in consideration for seven grassroots  non-core concessions being transferred to Minexco.
“We are delighted to partner with Minexco, a dynamic young company, to consolidate our non-core exploration assets with Minexco’s high-potential gold property in a very prospective part of Guyana that lies adjacent to Sandspring Resources Ltd’s Toroparu gold-copper deposit with Measured and Indicated resources of 6 million ounces and Inferred resources of 4 million ounces,”  Dr. Richard Spencer said.
“Our shareholders will gain exposure to Minexco’s gold property and to early-stage targets that show potential for gold-copper deposits while U3O8 Corp. remains focused on rapid uranium resource growth on our lead projects in Colombia, Argentina, and Guyana,” he said.
This transaction, a media release from the Company said, will result in the consolidation of exploration properties around Minexco’s Tamakay gold concession.
According to the Agreement, Minexco will finance the exploration within the area of interest, which has been jointly defined by the two parties to comprise Minexco’s Tamakay Gold Project and U3O8 Corp’s seven non-core properties.
Exploration will be carried out by a unit of U3O8 Corp’s Guyana team on a contract basis.
U3O8 Corp’s core exploration team will continue to drive its uranium programme forward in Guyana.
According to the Agreement,  U3O8 Corp may acquire up to an additional $1.2 million worth of Minexco Shares or units in subsequent financings for a period up to 18 months from the effective date of the Agreement (or earlier in the event of a completion of an initial public offering by Minexco).
U3O8 Corp will also have a preferential right to participate in future financings undertaken by Minexco, as long as U3O8 Corp continues to hold at least 10% of Minexco’s Shares outstanding.
And upon completion of 5,000 metres of drilling within the area of interest, Minexco shall issue warrants to U3O8 Corp to acquire 5% of Minexco’s Shares outstanding on a fully diluted basis. Each warrant will be exercisable for two years.
Dr. Richard Spencer, U3O8 Corp’s President and CEO, has been appointed to Minexco’s board.
Minexco Minerals has a presence in Guyana since 2008 and owns 100% of the Tamakay Prospecting License in Region 7 covering approximately 12,800 acres (20 Sq. Miles).
U308 has been exploring for uranium in Region 7 near the Kurupung Batholith, at the foot of the Roraima basin, since 2006.