First Uranium Resources Ltd. Closes Acquisition of Southwind Corporation
FIRST URANIUM RESOURCES LTD.
1500 – 1055 West Georgia Street
Vancouver, British Columbia V6E 4N7
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
FIRST URANIUM RESOURCES LTD. CLOSES ACQUISITION
OF SOUTHWIND CORPORATION
Vancouver, British Columbia, July 4, 2022 – First Uranium Resources Ltd. (the “ Company” or “First
Uranium”) (CSE: URNM) is pleased to announce, further to its news releases of March 4, 2022 and April
26, 2022, that it has entered into an agreement dated effective June 30, 2022 (the “Amending Agreement”)
altering certain terms of the Share Option Agreement dated April 22, 2022 among the Company,
Southwind, Paul Barrett and Erika Syba (co llectively with the Amending Agreement, the “ Option
Agreement”). Southwind holds a 100% interest in a land package located in Arkansas comprising a
phosphate and rare earth metals project. Pursuant to the terms of the Option Agreement, the Company was
granted the option (the “ Option”) to acquire 100% of the issued a nd outstanding shares of Southwind in
consideration for an aggregate of 13,333,327 common shares in the capital of the Company (“Shares”) and
a cash payment of USD$250,000. The Option has now been exercised.
Upon exercise of the Option and in satisfaction of th e consideration payable under the Option Agreement,
as amended, the Company issued 13,333,327 Shares at a deemed price of CDN$0.40 per Share and made
a cash payment of USD$250,000 to Southwind. The Shares are subject to a voluntary hold period and will
be automatically released in accord ance with the following schedule: (i) 20% on June 30, 2022; and (ii)
10% every three months thereafter to the 24 month anni versary of the date of issuance. The Company is
required to spend USD$3,000,000 on the Southwind properties in the next year (the “ Required
Expenditures”). If the Company does not incur the Required Expenditures, the founders of Southwind
will have an option to reacquire Southwind from the Company. Pursuant to the terms and conditions of the
Option Agreement, the Company paid a finder’s fee of 2,000,000 Shares (“ Finder’s Shares ”) to
Commodity Partners Inc.
The Shares and Finder’s Shares issued in connection with the Option Agreement are subject to a statutory
hold period of four months plus one day in accordan ce with applicable securities legislation ending on
October 31, 2022.
The securities referred to in this news release have not been and will not be registered under the United
States (“U.S.”) Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws
and may not be offered or sold in the U.S. or to, or for the account or benefit of, U.S. persons absent
registration or compliance with an applicable ex emption from registration requirements of the U.S.
Securities Act and applicable state securities laws.
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For further information contact:
Kelvin Lee
Chief Financial Officer
Email: [email protected]
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy
of this news release.
FORWARD LOOKING STATEMENTS:
This news release includes certain statements that may be deemed “forward-looking statements”. All
statements in this news release, other than statem ents of historical facts, that address events or
developments that the Company expects to occur, are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are generally, but not always, identified by the
words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and
similar expressions, or that events or conditions “will”, “would”,
“may”, “could” or “should” occur. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materia lly from those in the forward-looking statements.
Factors that could cause the actual results to differ ma terially from those in forward-looking statements
include regulatory actions, market prices, and continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ materially from those
projected in the forward-looking statements. Forw ard-looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the statements are made. Except as
required by applicable securities laws, the Company undertakes no obligation to update these forward-
looking statements in the event that management's belie fs, estimates or opinions, or other factors, should
change.