Oberon Uranium Corp. (CNSX:OBRN) signed a letter of intent to acquire 2037881 Alberta Ltd. for CAD 5.4 million on March 5, 2023. Oberon executed a share purchase agreement on April 3, 2023.

Pursuant to the Proposed Transaction, the Company will issue to an aggregate of 20,000,000 Class A common shares of Oberon to the 2037881 AB shareholders at a deemed price per Consideration Share of CAD 0.2025, representing an aggregate purchase price of CAD 4,050,000. The Proposed Transaction will be completed pursuant to available prospectus exemptions in accordance with applicable securities legislation. The mineral claims comprising the Fusion Uranium Zone Project will be subject to a 3% production royalty retained by a shareholder of 2037881 AB.

The Company will have the right to buy back the royalty at any time for CAD 1,000,000. Oberon and 2037881 AB have agreed to negotiate in good faith the terms of a definitive agreement with respect to the Proposed Transaction within 90 days. The Proposed Transaction is subject to receipt of all necessary regulatory approvals, including, as applicable, approval of the CSE, completion of due diligence reasonable or customary in a transaction of a similar nature, and entering into a definitive agreement, among other conditions.

The Proposed Transaction would be an arms-length transaction for the Company and would not constitute a fundamental change or result in a change of control of the Company, within the meaning of the policies of the CSE. Closing of the transaction is expected to take place on or about April 11, 2023.