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In this edition of Stock Analyzers, we want to bring an outstanding penny stock to your attention: otcmkts:mgaff, Mega Uranium Ltd. We will analyze the company information, market data, and press releases to give us an overall view of this dynamic company. Stock analyzers bring you the best penny stocks daily for your knowledge and research. All information has been collected from reputable financial sites to give you an overview of Mega Uranium Ltd.
Mega Uranium Ltd primarily focuses on the development and exploration of Uranium properties throughout Australia and Canada. Its fundamental properties include Georgetown (Maureen), Ben Lomond, located in Queensland, and Redport Gold Properties, situated in Western Australia. The company was formed in 1990 and is currently headquartered in Toronto, Canada.
Company Overview Of otcmkts:mgaff
This is a Toronto-based company, which focuses on Uranium properties in Australia and Canada. It also has a diverse portfolio of equity investments in uranium-focused public and private organizations. You can find further information on this company at its website www.megauranium.com.
The company’s mission is to be a mid-tier producer of uranium mainly by developing its projects throughout Australia. The company is committed to discovering new uranium sources, which is the clean fuel for the future. Its properties include;
The property is situated in Queensland, Australia, and contains a compliant resource of 1.33 million tonnes and further inferred resources tonnes of 0.6 million.
Georgetown Property (Maureen Uranium deposit)
This property is located in Georgetown, Queensland, and includes compliant resources of 3.1 million tonnes and a further inferred resources of 1.15 million tonnes.
Let us now take a look at the market data on this potential penny stock.
Mega Uranium Market Data
otcmkts:mgaff is currently trading at 0.1538 and is down by 5.64% at the time of this write-up, it has a market capitalization of 53,066 million and an average volume of 346,942. Mega Uranium does not offer a dividend yield at this time.
The company’s daily range is 0.138-0.1700, and the 52-week range is 0.0300-0.2100, with a current volume of 1,020,790. Its Pe ratio is 1.32. The earning date is not available at this time.
Let us discover some of the fantastic projects that this company has been involved in to analyze further.
otcmkts:mgaff Financial News releases
(MGA: TSX) To option Ben Lomond and Georgetown Properties
The company has entered an agreement with NXGold Ltd to grant the necessary conditional approvals of the TSX Venture Exchange, which is a two-year option to purchase Ben Lomond Option, which is based in Queensland.
Mega Uranium will receive $180,000 cash, 900,00 common share purchase warrants as a consideration for the option grant.
The Ben Lomond option is conditional and may be exercised by NX, which is subject to certain conditions, including the Australian Foreign Investment board; failing the approval means the option will be terminated and cancel the option securities. NX can choose to exercise the option to acquire Ben Lomond in cash or common shares for approximately $2.5 million. It is also subject to contingent payments to Mega Uranium up to $2,385,000 if uranium’s average spot price should reach $50 – $100 before closing or after the Ben Lomond sale.
The Georgetown option is also conditional due to the satisfaction of certain conditions, including the Australian Investment Board’s approval, failing that the option will terminate. If indeed ben Lomond is exercised, the company can sell the Georgetown property to NX for approximately $500,00. NX’s Georgetown property purchase is subject to contingent payments of roughly $1,425,000 if the average price of uranium reaches $50 – $100 prior to the closing or after the Georgetown sale.
Mega Uranium has owned Ben Lomond and Georgetown Properties since 2005 and has operated them for several years, during periods where uranium has been depressed.
Mega Uranium Ltd Announce That they have mutually agreed not to proceed in change of business of NXGold
Mega Uranium have announced that due to adverse market conditions. They have agreed with NXGold (TSXV: NXN) that they have decided not to proceed with the proposed agreement with NXGold, a mining issuer of uranium-focused investment issuer, and the acquisition of the portfolio securities from Mega Uranium, which was previously announced.
The participants well received the previous transaction. All parties continued to move forward with negotiations, but adverse market conditions agreed that the timing was not right.
Both parties have now terminated the contract without further obligations.
otcmkts:mgaff has announced management changes, which will be effective in march 2020; Chris McFadden, CEO, has stepped down and is now replaced with Philip Williams, Chris McFadden resigned from NXGold’s board of directors.
Leigh Curyer, the chairman, said that he would like to personally thank Chris for his commitment and efforts to NXGold throughout the years and will look forward to him seeking further opportunities for NXGold in the future. The current conditions are very challenging, and his decision to reduce costs to the company reflects his commitment to the company.
Mr. Williams has over 15 years of mining and finance experience, including roles in development, research analyst, and recently a director of investment banking; he was the co-founder of Uranium Royalty Corp, where he focused on metals and mining sectors. With all of these roles, he has focused a considerable time on the uranium industry. When he was a research analyst, he worked with a team that covered a range of commodities, including precious metals, uranium, and diamonds. During his time at Pinetree Capital Ltd., a natural resource investment company, he was responsible for monitoring and analyzing uranium portfolios and was also appointed to the board of directors. In Dundee Capital Markets, an investment banking group, he completed equity financing across various commodities, including uranium, and was named advisor.
When he was CEO of Uranium Royalty Corporation, he oversaw multiple royalty acquisitions and held a Bachelor of Commerce Degree.
Mega uranium and NXGold Proposed Change of Business to Uranium Investment Issuer
Mega Uranium (TSX: MGA) has announced in December 2019. They have executed a binding term sheet, which lays out the terms proposed by the NXGold to carry out a change of business from tier 2 mining issuer to tier 2 uranium-focused investment issuer. It will acquire the portfolio from otcmkts:mgaff (Mega Uranium) for roughly $10,865 million, which will be payable by NXGold shares.
The transaction’s completion is subject to conditions, including the approval of the TSX Venture Exchange, The Toronto Stock Exchange, with certain matters regarding NXGold and Mega Uranium shareholders.
Trading in the company common share has been halted in December 2019 and will remain halted until the TSXV requirement have been met.
The board of directors has agreed that the company’s working capital would be best in the framework of a uranium-focused investment organization.
Chris McFadden, the CEO, said the announcement would represent the first step in creating a quality and publicly traded investment company focused exclusively on the uranium sector. Since the accident, early 2011 of the Fukushima Daiichi reactors, the sector has been in a bear market, but it is now set to recover. This will provide investors a new and unique way in exposure to the uranium sector, which this sector lacks at present.
Leigh Curyer, Director of NXGold, said, I support this change in the direction of NXGold and will look forward to an active role in its future. The team involved is uniquely positioned to execute and build successful companies in this sector.
otcmkts:mgaff ( Mega) Over time, the company has accumulated a portfolio of uranium-focused securities, including sales of mineral properties and investment opportunities. The securities generated value through less capital exposure to the uranium industry throughout the slow down. The company sees this opportunity to unlock additional value in the portfolio and believes the timing for a uranium investment vehicle is suitable.
Richard Patricio, CEO Of Mega and director of NXGold said, the company is excited to be the founder and investor in UEQ. We have extensive history and acquisitions in this sector which include, new company creation and divestitures. As a manager of UEQ, we aim to surface significant value for shareholders far beyond what is offered by the markets presently.
It has been proposed that the investment portfolio from Mega at the agreed purchase price of $10,865,218 and that the company undergoes the COB to acquire it. The portfolio consists of 3000,000,000 shares of Toro Energy Ltd, $2,85,167 shares of Uranium Royalty Corp, and 30,000,000 Shares of Mega to be issued to NXGold. URC expects the transaction to be completed in December; during this time, it is expected to be listed in TSXV.
The number of securities in the investment portfolio may be reduced to satisfy the Maximum Equity Condition; also, the inclusion of URC shares in the portfolio is conditional on obtaining third-party consent.
The purchase price can be adjusted if the investment portfolio’s securities are reduced, or the investment portfolio’s market value increases or decreases by 10%.
The price will be payable through NXGold in common shares approximately 217,304,369 and $0.05 per share, which is an adequate price, subject to the adjustment of the number of shares before purchase.
Mega will manage the company’s everyday operations on completing the transaction; their responsibilities will include managing company business and assets and administration services. Mega will have the right to appoint a nominee to the board of directors. Philip Williams will replace Chris McFadden. The announcement of the completed transaction will reveal the details.
Name Change, Financing, and share consolidation
With the transaction in condition to its closing, it is also known that the company will undertake additional investments or private placing financing. Upon completion, Mega will hold %50 of the outstanding common shares.
The company also plans to consolidate its common shares and change the name to Uranium Equities Capital Corp; further to this, TSXV will assign a new symbol for the name change.
Due diligence must be satisfactory by both parties on the completion of the transaction; Mega and NXGold enter into a management services agreement. There must be a completion of financing the maximum equity condition or TSXV approval of the investment portfolio’s listing part. Until the shareholder’s approval can be obtained, the transaction cannot close. The company will hold a meeting with the shareholders to seek approval. These details with be announced at a further date.
There is no guarantee that the transaction will be completed. So, investors are cautioned that management information circular will be prepared in connection with this transaction and are also advised that any information released may not be accurate and should not be relied on. Trading NXGold should be considered highly speculative. TSXV has neither approved nor unapproved the press release or passed any merits on the transaction.
To stay up to date with Mega Uranium news, please visit the following websites to stay informed. Like this company? You will be interested in reading otcmkts:ocln, which is another excellent penny stock with potential.