Canadian firm Consolidated Uranium (CUR) has agreed to purchase privately owned exploration company New Standard Resources, which owns a 100% interest in the Yarranna Uranium projects in South Australia.
The definitive share sale and purchase agreement has been signed by Consolidated Uranium with certain entities (sellers).
With the acquisition, Consolidated Uranium will mark its entry into the uranium mining-friendly jurisdiction of South Australia.
Under the agreed terms, CUR will acquire New Standard by issuing 2,059,732 CUR common shares at $1.94 apiece.
Furthermore, the seller will receive a 2% net smelter returns royalty on the Yarranna Uranium projects.
Consolidated Uranium CEO Philip Williams said: “Adding the Yarranna Project in South Australia is a natural extension of our Australian strategy.
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“The country remains a key focus for CUR as it is host to significant uranium resources, operating uranium mines and an attractive federal and state level mining regime.”
“South Australia is a desirable location to explore for uranium with an existing operating uranium mine and several advanced development projects. We believe the Projects have the potential for additional discovery based on past drilling, which encountered strong grades over wide spacing, and the potential for in situ recovery, which is another attractive feature that we intend to further evaluate.”
Located in the Eucla Basin of southwest South Australia, the Yarranna advanced stage exploration project was subject to extensive uranium exploration up until 1988 by the Carpentaria Exploration Company.