MEGA Uranium to Option Ben Lomond & Georgetown Properties
The Uranium Leader TM
PRESS RELEASE
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
PRESS RELEASE
MEGA URANIUM LTD.: “MGA” (TSX)
FOR IMMEDIATE RELEASE: May 14, 2020
MEGA URANIUM TO OPTION BEN LOMOND & GEORGETOWN PROPERTIES
Toronto, Canada (May 14, 2020) – Mega Uranium Ltd. (MGA: TSX) announces that it has entered
into an agreement with NXGold Ltd. (“ NX”) to grant to NX (following receipt by NX of the necessary
conditional approvals of the TSX Venture Exchange) a two-year option to purchase Mega’s Ben
Lomond uranium property located in Queensland, Australia (the “ Ben Lomond Option ”). As
consideration for the option grant, Mega will receive from NX $180,000 in cash, 900,000 common
shares, 900,000 common share purchase warrants exercisable for an equal number of common
shares (the shares and warrants are collectively referred to as the “ Option Securities ”, and the
number of Option Securities assumes the completion of a 1 -for-10 share consolidation by NX prior
to issuance ), an option to sell to NX Mega’s Georgetown uranium property , also located in
Queensland, Australia (the “Georgetown Option”), and the right to appoint one nominee to NX ’s
board of directors.
The Ben Lomond Option will be conditional upon and may be exercised by NX subject to the
satisfaction of certain conditions, including the approval of the Australian Foreign Invest ment
Review Board, failing which the option will terminate and the Option Securities will be cancelled .
NX may exercise the option and acquire the Ben Lomond pro perty for a price of $ 2.5 million,
payable in cash or common shares (under certain circumstances) , and reimbursement to Mega of
expenses incurred in respect of the property since the execution of the option agreement. The
purchase of the Ben Lomond property is also subject to contingent payments to Mega of up to
$2,385,000, if the monthly average spot price of uranium reach es US$50, US$75 and US$100 ,
prior to or after closing of Ben Lomond sale. If the option is exercised, completion of the sale of the
Ben Lomond property will be subject to the satisfaction of various conditions.
The Georgetown Option will also be conditional upon and may be exercised by Mega subject to the
satisfaction of certain conditions, including the approval of the Australian Foreign Investment
Review Board, failing which it will terminate. If the Ben Lomond Option is exercised, Mega can
exercise the Georgetown Option and sell the Georgetown property to NX for a price of $500,000,
payable in cash or common shares of NX (under certain circumstances) , and reimbursement to
The Uranium Leader TM
Mega of expenditures in r espect of the property since the execution of the option agreement. The
purchase of the Georgetown property by NX is also subject to contingent payments of up to
$1,425,000 if the monthly average spot price of uranium reaches US$50, US$75 and US$100, prior
to or after closing of the Georgetown sale. If the Georgetown Option is exercised, completion of the
sale of the Georgetown property will be subject to the satisfaction of various conditions.
Mega has owned the Ben Lomond and Georgetown properties since 2005 and operated them under
care and maintenance for several years, while the price of uranium has remained depressed.
ABOUT MEGA URANIUM LTD.
Mega Uranium Ltd. is a Toronto -based mineral resources company with a focus on urani um
properties in Australia and Canada and a portfolio of equity investments in uranium -focused public
and private companies . Further information on Mega can be found on the company’s website at
www.megauranium.com.
For further information please contact:
Mega Uranium Ltd.
Richard Patricio
Chief Executive Officer and President
T: (416) 643-7630
www.megauranium.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This press release contains forward -looking information based on current expectations in connection with the
proposed options and underlying property sales (the “Transaction”), including events which are proposed to
occur under the terms of the agreement. Forward -looking information is often, but not always, identified by the
use of the words “contemplate”, “estimate”, “expect” and “anticipate” and statements that an event or result
“may”, “will”, “should”, “could” or “might” occur and any similar expressions or negative variations thereof.
In providing forward-looking information in this press release, we have made numerous assumptions regarding
the Transaction, which we believe to be reasonable, including assumptions relating t o the satisfaction of
conditions to the option grants and completion of the Transaction and the expected actions of third parties.
Forward-looking information entails various risks and uncertainties however that could cause actual results to
differ materially from those reflected in the forward -looking information. Specific risks that could cause actual
results to differ materially from those anticipated or disclosed in this press release include, but are not limited to
failure to satisfy the conditions to complete the Transaction, including failure to receive required approvals, and
the delay of completion or failure to complete the Transaction for any other reason. General risks relating to
capital markets, economic conditions, and regulatory changes may a lso cause actual results to differ materially
from those anticipated or disclosed in this press release. Forward -looking information are not guarantees of
future performance, and management’s assumptions upon which such forward -looking information are base d
may prove to be incorrect.
Accordingly, there can be no assurance that actual events or results will be consistent with the forward -looking
information disclosed herein. In light of the significant uncertainties inherent in forward -looking information, a ny
such forward-looking information should not be regarded as representations by us that our objectives or plans
relating to the rights offering or standby commitment or otherwise will be achieved. Investors are cautioned not
to place undue reliance on any forward-looking information contained herein and that such forward -looking
information are provided solely for the purpose of providing information about our current expectations and plans
relating to the future. Readers are cautioned that such informatio n may not be appropriate for other purposes. In
addition, forward-looking information relates to the date on which they are made.
We disclaim any intention or obligation to update or revise any forward -looking information contained in this
press release, whether as a result of new information, future events or otherwise, except to the extent required
by law.