Corporación América, through its subsidiaries Abatare Spain, S.L.U. and ACI Capital S.à r.l. (“Corporación América”), and Blue Sky Uranium Corp., along with its subsidiary Minera Cielo Azul S.A. (“BSK”), entered into an earn-in agreement whereby Corporación América will have the exclusive right to acquire up to 80% of the “Ivana” uranium-vanadium deposit, located in the Province of Río Negro, Argentina (the “Project”). This will be done indirectly through contributions to a company incorporated for such purpose, which will hold the respective mining rights (the “Company”).
Corporación América shall have the right to acquire up to 49.9% of the Project through contributions to the Company totaling US$ 35 million. Additionally, upon completion of a feasibility study, Corporación América will have the right to acquire up to 80% of the Project through contributions to the Company aimed at covering the costs and expenses necessary to develop and construct the Project until it reaches commercial production, subject to a maximum investment commitment of US$ 160 million.
Furthermore, subject to minimum annual investment amounts and for a six-year period, the Company will have the option to acquire additional exploration areas owned by BSK within the Amarillo Grande Project, which comprises a 145 km uranium corridor, discovered by BSK, containing uranium and vanadium mineralization near the surface and that has the potential for the discovery of multiple deposits.
Legal advisors to Corporación América
Bomchil: partners Fermín Caride, Guillermo Teijeiro, Florencia Pagani, counsel Alejandro D’Onofrio and associates Dolores Reyes and Francisco Diskin.
Cassels, Brock & Blackwell LLP: partner Darrell W. Podowski.
In-house counsel: Emilio Daneri and Esperanza Del Río.
Legal advisors to BSK
Alfaro-Abogados SC: partners Andres Villarreal, Federico Palavecino and Nicolás Ferla.
Blakes, Cassels & Graydon LLP: partner Kathleen Keilty and associate Darren Whitehouse.