Madison Metals Inc. (CSE: GREN) (OTCQB: MMTLF) is pleased to announce the signing on May 30, 2023 of a multi-year uranium forward sales agreement with an international banking organization (“IBO”). The ten-year supply agreement provides for the commitment and delivery of the first 20 million pounds of U3O8 from Madison’s in the ground resources. The IBO will facilitate market trades at a price to be determined at the time of transaction and within the context of the market. The sales floor for transactions will be set at USD$45 per pound of U3O8. 50% of the proceeds will be credited to Madison and the Company will provide quarterly updates on sales figures.
“Maintaining the belief in monetizing our uranium resources using innovative strategies, I am confident that this new sales agreement appropriately aligns our strategy with delivering shareholder value by providing non-dilutive capital to explore, develop and mine our projects as quickly as possible,” said Duane Parnham, Executive Chairman and CEO of Madison Metals.
Madison will use the sales proceeds to advance compliant resource/reserve figures, for engineering and economic studies, and mining at its Namibian uranium properties. Madison will also be managing a risk assessment program and hedge book to purchase additional uranium products as or if needed on a tax-neutral basis.
In connection with the forward sales agreement, Madison will issue on signing two million common shares to JJK Holdings LTD, an arms-length company 100% owned by Adrian Towning, who facilitated the transaction. An additional one million common shares will be issued to JJK upon achieving a five million pounds sales milestone. All shares issued under the agreement are priced at C$0.43 as of the close of market on May 31, 2023. The shares are subject to a voluntary 18-month escrow period from the date of issue and will be released in three equal installments.
As a result of the mutual termination disclosed in a press release dated April 28, 2023, Madison has no obligation to deliver any uranium to Lux Partners Ltd. Further, the Company has not issued any shares as stated in the October 27, 2022 press release.
The IBO forward sales agreement contains standard default clauses for a contract of this type, with right to remedy protecting the buyer and seller with no hardship on default. The agreement with IBO is the only forward sales agreement Madison has in place at this time.
About Madison Metals Inc.
Madison Metals Inc. is an upstream mining and exploration company focused on sustainable uranium production in Namibia and Canada. With over 50 years of mining experience, including 22 years in Namibia, its management team has geological and financial expertise and a track record of creating shareholder value.
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