On July 19, 2024, IsoEnergy Ltd. completed the sale all of the outstanding shares of a wholly-owned subsidiary, which holds a 100% interest in the Laguna Salada Project located in Chubut and the Huemul Project located in Mendoza, to Jaguar Uranium Corp., a privately held company focused on the uranium sector with strong operating experience in Latin America.
As consideration for the transaction, IsoEnergy received (i) US$10 million of common shares of Jaguar, (ii) a 2% NSR royalty payable on all production from the Laguna Salada Project, of which Jaguar has the right to buy back 1% for a period of seven years at a price of US$2.5 million; (iii) a 1% NSR royalty payable on all production from a portion of the Huemul Project; and (iv) an option to acquire a 1% NSR royalty payable on all production from the remainder of the Huemul Project.
In connection with closing of the transaction, IsoEnergy entered into an investor rights agreement with Jaguar pursuant to which, among other things, IsoEnergy has the right to appoint one director to Jaguar’s board of directors effective upon completion of a public listing of the Jaguar shares on a recognized stock exchange and has been granted pre-emptive rights to maintain its pro rata ownership interest in Jaguar.
Cassels acted for IsoEnergy.