Madison Metals has terminated the 10-year uranium forward sales agreement with Sanmiguel Capital Investment.
The companies signed the contract on May 30, 2023, where Madison Metals was supposed to deliver 20 million pounds of U3O8 for tokenisation.
Sanmiguel Capital Investment would then facilitate market trades at a price that is determined at the time of the transaction and within the market context.
The sales floor for transactions would be USD$45 per pound of U3O8, with Madison Metals receiving 50% of the proceeds.
Only 2,130 pounds of U3O8, priced at US$68 per pound, was purchased from initial uranium token sales.
Madison Metals said it will honour delivery if the investor(s) meets all the contractual redemption and delivery protocols.
The company added that the decision to terminate the forward sales agreement with Sanmiguel also removes any confusion regarding obligations, freeing up 100% of Madison Metal’s future uranium production for full financial benefit back to the company’s shareholders.
In connection with the uranium forward sales agreement, Madison will also file to cancel 1,5 million performance shares issued to JJK Holdings LTD (“JJK”), an arm’s length company.
JJK Holdings LTD is 100% owned by Adrian Towning, who facilitated the transaction.
Madison Metals CEO Duane Parnham said the parties made a reasonable, honest effort to support this innovation with Sanmiguel.
However, Parnham said Madison Metals’ goal has always been focused on operational excellence, expanding its current uranium resource base in Namibia, making discoveries, and providing shareholders with an incredible opportunity to appreciate share prices.
“The Khan high-grade uranium discovery at Madison West shows attributes similar to those of the Rossing Mine.
“We believe that proving Khan’s full potential will position Madison as a powerhouse within the industry,” Parnham said.
