First Uranium Resources Ltd. to Acquire Southwind Corporation Phosphate and Rare Earth Exploration and Development IN Central United States
FIRST URANIUM RESOURCES LTD.
1500 – 1055 West Georgia Street
Vancouver, British Columbia V6E 4N7
FIRST URANIUM RESOURCES LTD. TO ACQUIRE SOUTHWIND CORPORATION
PHOSPHATE AND RARE EARTH EXPLORATION AND DEVELOPMENT IN
CENTRAL UNITED STATES
High grade surface Phosphate deposit highly enriched with heavy Rare Earth elements
located in Arkansas
Two strategic and critical products with strong demand growth
Phosphate grade is at top end of US producing phosphates
REE enrichment is amongst the highest in USGS database
Above 20 worldwide REE projects in terms of Volume
Above 15 worldwide projects in terms of Grade
Proximity to domestic markets with rail export and transport infrastructure
Vancouver, British Columbia, March 9, 2022 – First Uranium Resources Ltd. (the “Company”
or “First Uranium”) (CSE: URNM) (KMMIF:OTC) is pleased to announce it has entered into a
binding letter of intent (the “ LOI”) for an option to acquire all of the shares of Southwind
Corporation (“ Southwind”), a Delaware corporation, hol ding significant exploration and
development properties in and around Independence County, Arkansas, United States of America.
About Southwind
Southwind Corporation is an Arkansas based phosphate and heavy rare earth development project
operated by experienced geologists and resource entrepreneurs; Paul Barrett and Erika Syba. The
project assets host high-grade, surface phosphate deposit highly enriched with heavy rare earth
elements. The deposit is made up of two strategic and critical products with strong demand growth:
Phosphate and Heavy Rare Earth Elements. Phosphate prices are approaching 10 year highs. The
project is near producing rock quarries and is therefore in close proximity to rail export and
additional transport infrastructure.
Project Characteristics
Phosphate grade is at top e nd of US producing phosphates (b ased on the US Geological
Survey)
REE enrichment is highest in USGS database (based on the US Geological Survey)
Above 20 worldwide REE projects in terms of anticipated volume
Above 15 worldwide projects in terms of Grade
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The project characteristics are based on US Geological Survey data and are not contained in a NI
43-101 report. The references to grade and project size and scope are therefore provided for context
only and should not be relied upon by readers in assessing the technical merit of the project.
Paul Barrett, CEO of Southwind, said "We are delig hted to be partnering with First Uranium on
this exciting project, with combined potential for two vital commodity streams - phosphates and
rare earths. First Uranium’s participation will accelerate development of this near-surface
stratiform deposit, situated in the heart of the US Midwest, which has excellent potential to feed
into the agricultural and high-tech metals sector s, both of which are e xperiencing sustained and
long-term growth in feedstock demand."
Terms of LOI
Pursuant to the terms of the LOI, the Company will have the option to acquire 100% of the shares
of Southwind by issuing up to 20,000,000 shares of the Company as follows:
6,666,666 upon entering into a Definitive Agreement
6,666,666 upon completion of an NI 43- 101 Report having a minimum
recommended work program of not less than USD $2 million
6,666,667 upon completion of development/purchase agreements with
property owners
In addition to the share payments, the Compa ny shall be obligated to incur minimum work
expenditures of not less than $3 million USD within 12 months from the completion of the NI 43-
101 Report.
The Company will pay finder’s fees of up to 2,000,000 shares in the event of and as and when the
option is exercised by the Company.
Lee R. Beasley, CPG is a qualified person pursuant to NI 43-101 and has read and approved of the
content of this news release.
Private Placement
The Company also announces a private placem ent of subscription r eceipts of up to $6,000,000
gross proceeds at a price of $0.35 per subs cription receipt for a total of up to 17,150,000
subscription receipts. Each subscription receipt is convertible into one common share and one half
of a share purchase warrant, each whole warrant being exercisable into a common share for a price
of $0.50 per share. The proceeds of the subscr iption private placemen t will be utilized for
exploration work, and acquisiti on and development work on the Company’s Arkansas project
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described herein. Conversion of the subscription r eceipts is subject to the Company entering into
a definitive option agreement with the Southwind shareholders and the proceeds from the sale of
the subscription receipts will be held in escrow until the condition is satisfied.
The subscription receipt private placement will be brokered by Emerging Equities Inc. of Calgary,
Alberta and is anticipated to close on or about March 31, 2022.
About First Uranium
First Uranium is a resource exploration issuer focused on locating and exploring natural resource
projects in North America. The Company has one project in Saskatchewan, Canada.
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 Secur ities 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 statements of historical facts, that address events or
developments that the Company expects to occu r, are forward-looking statements. Forward-
looking statements are statements that are not hi storical facts and are generally, but not always,
identified by the words “expects” , “plans”, “anticipates”, “belie ves”, “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 materially from those in the
forward-looking statements. Factors that could cause the actual resu lts to differ materially from
those in forward-looking statements include re gulatory actions, market prices, and continued
availability of capital and financing, and general economic, ma rket or business conditions.
Investors are cautioned that any such statements are not guarant ees of future performance and
actual results or developments may differ materia lly from those projected in the forward-looking
statements. Forward-looking statements are bas ed 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 beliefs, estimates or opinions, or other factors, should change.