Blue Sky Uranium has entered a definitive earn-in agreement with Abatare Spain (COAM) and ACI Capital to sell stake in the Ivana uranium-vanadium deposit in Rio Negro, Argentina.
Under this agreement, Blue Sky and its subsidiaries Minera Cielo Azul and Ivana Minerals (JVCO) will grant COAM the exclusive right to acquire up to an 80% indirect interest in the Ivana deposit.
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COAM will obtain an 80% equity stake in JVCO, which holds the rights to the property, under specific terms and conditions.
Under the agreement, COAM can initially acquire a 49.9% indirect equity interest by funding cumulative expenditures of $35m.
Subsequently, COAM can acquire up to an 80% equity interest in JVCO by funding the development and construction costs to bring the project to commercial production, following the completion of a feasibility study.
The initial closing of the transaction requires Blue Sky Uranium to transfer all JVCO common shares to its subsidiary, Minera Cielo Azul, within 120 days of the agreement’s effective date.
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By GlobalDataAdditionally, the company must secure necessary regulatory and corporate approvals including conditional approval from the TSX Venture Exchange and shareholder approval.
Blue Sky president & CEO Nikolaos Cacos said: “Having fleshed out the details of this landmark agreement in recent months, we now look forward to closing the transaction, which will position Blue Sky and its shareholders to greatly benefit from advancing the Ivana deposit alongside member companies of the global energy business of Corporación América Group, one of the most capable groups in Argentina.
“The additional call option in the agreement will help fund exploration at other highly prospective properties in our portfolio, clearing a path to make more discoveries, build more resources and create more value.”
A special meeting of Blue Sky Uranium’s shareholders is expected to be held in February 2025 to consider and approve the transaction.
Blakes, Cassels & Graydon acted as Canadian legal counsel, while Alfaro-Abogados SC served as Argentinian legal counsel for the transaction.
Both COAM and ACI Capital are part of Corporación América Group.
