Sprott Asset Management Enters Into Agreement With Uranium Participation Corporation to Form the Sprott Physical Uranium Trust - Seite 2

The transaction is expected to close in the late second or early third quarter of 2021, subject to satisfaction of customary conditions, including receipt of regulatory, securities commission and stock exchange approvals, Ontario court approval and approval by the common shareholders of UPC.

The definitive agreement provides for, among other things, customary representations, warranties and covenants, including customary non-solicitation covenants and a “fiduciary out” that allows the UPC board to terminate the definitive agreement to accept a superior proposal in customary circumstances, subject to a “right to match” in favor of Sprott Asset Management and payment by UPC of a termination fee of up to C$3.0 million to Sprott Asset Management. Sprott Asset Management has agreed to reimburse UPC up to C$1.0 million, other than in certain limited circumstances, for out-of-pocket expenses incurred by UPC in connection with the transaction, to fund the payment of the termination fee payable to UPC’s current manager under its existing management services agreement and to contribute C$6.7 million to UPC at closing, representing approximately 1% of UPC’s most recently calculated net asset value. The foregoing summary is qualified in its entirety by the provisions of the definitive agreement, a copy of which will be filed by UPC under its profile on SEDAR at www.sedar.com.

Stikeman Elliott LLP and Skadden, Arps, Slate, Meagher & Flom LLP are serving as legal counsel to Sprott Asset Management.

About Sprott
Sprott is a global leader in precious metal and real asset investments. With offices in Toronto, New York and London, Sprott is dedicated to providing investors with specialized investment strategies that include Exchange Listed Products, Managed Equities, Lending and Brokerage. Sprott’s common shares are listed on the New York Stock Exchange under the symbol SII and Toronto Stock Exchange under the symbol SII. For more information, please visit www.sprott.com.

About WMC Energy
WMC Energy (“WMC”) is an independent physical commodity merchant and industrial asset development company focused on the low carbon energy sector. Through its expertise, WMC assists participants in the nuclear fuel and lithium-ion battery supply chain with their raw material needs and risk management. WMC sources, stores, finances and delivers physical commodities worldwide, and helps clients navigate these markets. For more information on WMC, please visit www.wmc-energy.com.