Under terms of the LOI, Karoo can acquire African Energy Resources’ Zambian uranium projects for cash consideration of $2m as well as equity package consisting of shares and share purchase warrants with a value of $500,000.
In addition to completion of due diligence of Karoo and African Energy, the transaction is subject to TSX Venture Exchange approval and Karoo obtaining financing on acceptable terms.
The Zambian uranium portfolio comprises the Chirundu, Kariba Valley and Northern Luangwa Valley project.
The Chirundu and Kariba mineralization is hosted by Karoo Supergroup sediments while the mineralization at North Luangwa Valley is hosted in feldspathic gneisses of the Karoo basement.
