TORONTO, Ontario (September 24, 2013) - Mega Uranium Ltd.(TSX:MGA) ("Mega" or the "Company")announces the termination of its arrangement agreementdated August 13, 2013 with Rockgate Capital Corp. in respect of their proposed merger.
Megawas informed by Rockgate that a formal takeover bid for all of Rockgate's outstandingcommon shares has been made by Denison Mines Corp., which the board ofdirectors of Rockgate determined constitutes a "Superior Proposal" for thepurposes of the arrangement agreement. Followingconsideration of the Denison bid and its impact on Rockgate, including theincreased transaction costs anticipated be incurred by Rockgate, Mega waivedits rights under the arrangement agreement to propose to amend the terms of themerger to match the bid. Consequently, Rockgateterminated the arrangement agreement in accordance with its terms andconcurrently paid the $1 million termination fee to the Company.
RichardPatricio, Mega's Executive Vice President, Corporate Affairs, stated, "We aredisappointed that the Rockgate transaction will not proceed. However, we are committed to makingdisciplined investment decisions and the changing fundamentals of the deal nolonger represented a comfortable value proposition for Mega. Going forward, we have identified severalother opportunities which fit within our model of owning quality uraniumprojects through direct property ownership or strategic equity investments. We continue to remain optimistic about thelong-term strength of the uranium market, and view this period of industry weaknessopportunistically for the purposes of accumulating uranium assets, whilecontinuing to aggressively control our operating costs."
Megaintends to proceed with the special meeting of its shareholders on September30, 2013 to consider the proposed 1-for-10 consolidation of the Company'scommon shares and name change to "Uranium Capital Corporation".
MegaUranium Ltd.
MegaUranium Ltd. is a Canadian mineral resources company listed on the TSX, with afocus on uranium properties. Mega has a global presence with projects inAustralia at feasibility and pre-feasibility stages, and exploration projectsin Australia, Canada and Cameroon. Currently, Mega is focused on thedevelopment of two of its Australian projects, Lake Maitland located in WesternAustralia and Ben Lomond located in Queensland. Mega has a farm in and jointventure with JAURD and IMEA on the Lake Maitland Project. Further informationon Mega can be found on the company's website at www.megauranium.com.
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For Mega Uranium Ltd.
Investor RelationsMega UraniumLtd.Richard PatricioExecutiveVice President, Corporate AffairsT: (416) 643-7630info@megauranium.comwww.megauranium.com