Star shareholders hit go button
Namibian uranium earn in
Australian-listed Star Minerals has signed a nearly N$71 million agreement with Canadian Madison Metals.
Andrew Todd - Star Minerals shareholders have voted through the company’s proposed joint venture (JV) agreement to earn up to 85% of the Cobra uranium project in the world-class Erongo district of Namibia.
The project lies just 5 km from Rössing, the world’s longest running uranium mine and is surrounded by further world-class operations including the Husab mine and Paladin Energy’s Langer Heinrich project.
The farm-in deal with Canadian-listed Madison Metals allows Star to earn an initial 51% controlling stake in Cobra by investing US$3.95 million, nearly N$71 million, across three years, with the opportunity to further increase its ownership to 85%.
Programmes
Management says the project has permits in place to immediately get drilling on an initial six-hole programme.
The initial work programmes – which it aims to kick off in January - will evaluate the strike potential and the twinning of some existing holes that make up the non-Jorc uranium estimate.
The Cobra project has a non-JORC resource of about 15.6 million tonnes at a grade of 260 parts per million (ppm) for 9 million pounds of uranium oxide.
The shareholder vote comes at a time when the historically lower-grade resource is experiencing a second wind on the back of continued stellar prices for the yellow uranium metal of over US$77 per pound.
Agreement
Star Minerals chairman Ian Stuart said: “Star is excited following shareholder approval ... allowing the company to earn into the Cobra project with Madison Metals. The exploration team has reviewed drill planning to begin further exploration activities at the project in order to progress towards resource definition drilling as soon as possible.”
Under the three-stage earn-in agreement, Star must pay a total of US$1.9 million in cash and shares, nearly 6.7 million in performance shares and spend US$2.425 million on exploration over the first 36 months of the agreement.
By 2027, Star will secure its 51% stake in the project and then have the option to push forward to a final 85% controlling stake. - The Sydney Morning Herald
The project lies just 5 km from Rössing, the world’s longest running uranium mine and is surrounded by further world-class operations including the Husab mine and Paladin Energy’s Langer Heinrich project.
The farm-in deal with Canadian-listed Madison Metals allows Star to earn an initial 51% controlling stake in Cobra by investing US$3.95 million, nearly N$71 million, across three years, with the opportunity to further increase its ownership to 85%.
Programmes
Management says the project has permits in place to immediately get drilling on an initial six-hole programme.
The initial work programmes – which it aims to kick off in January - will evaluate the strike potential and the twinning of some existing holes that make up the non-Jorc uranium estimate.
The Cobra project has a non-JORC resource of about 15.6 million tonnes at a grade of 260 parts per million (ppm) for 9 million pounds of uranium oxide.
The shareholder vote comes at a time when the historically lower-grade resource is experiencing a second wind on the back of continued stellar prices for the yellow uranium metal of over US$77 per pound.
Agreement
Star Minerals chairman Ian Stuart said: “Star is excited following shareholder approval ... allowing the company to earn into the Cobra project with Madison Metals. The exploration team has reviewed drill planning to begin further exploration activities at the project in order to progress towards resource definition drilling as soon as possible.”
Under the three-stage earn-in agreement, Star must pay a total of US$1.9 million in cash and shares, nearly 6.7 million in performance shares and spend US$2.425 million on exploration over the first 36 months of the agreement.
By 2027, Star will secure its 51% stake in the project and then have the option to push forward to a final 85% controlling stake. - The Sydney Morning Herald
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