Crosshair Exploration & Mining (TSX:CXX) has tendered a US$12.85 million hostile bid for what it believes are key uranium deposits in the U.S.
On Sunday, the Vancouver-based nuclear metal explorer published a proposal to buy AusAmerican Mining’s (ASX:AIW) U.S. uranium assets in Nevada, Texas and New Mexico.
Crosshair issued its proposal directly to AusAmerican shareholders, claiming the Australian company had “failed to meaningfully engage with Crosshair” regarding the deal.
Crosshair further claimed the target company has “failed to adequately capitalize” on the assets and doesn’t have a “realistic” plan to “halt the value destruction” for shareholders.
“Our proposal allows AusAm to immediately benefit from a significant premium in the value of their assets, whilst allowing Crosshair to accelerate the development of the uranium assets,” Crosshair executive chairman Mark Morabito said.
Crosshair has yet to issue a response, but the proposal is the second time a junior Vancouver company has been involved in a uranium deal in the last week.
On Friday, Saskatoon-based uranium giant Cameco (TSX:CCO) launched a $520 million hostile bid for Vancouver’s Hathor Exploration (TSX:HAT). (See “Cameco launches hostile takeover bid for Hathor” – BIV Business Today, Aug. 26.)
At press time, Crosshair’s shares were up 5% to $0.63.
Joel McKay
Twitter:jmckaybiv