Koba Resources has signed a four-year option agreement to acquire a 100% interest in the Harrier Uranium Project in eastern Canada.

The agreement was entered into with a local geologist based in Newfoundland (vendor) and gives the company the right to acquire a 100% interest in the project.

With 527 mining claims, the project is situated in a region known for high-grade uranium deposits.

To maintain the option, Koba will have to make staggered payments over four years, including cash and shares, and commit to $3m (A$4.62m) in exploration and development expenditure.

Initially, Koba will pay C$100,000 ($72,765) in cash and issue C$50,000 in shares by 30 April 2024. Subsequent anniversaries will see incremental payments in cash and shares, culminating in a total of C$350,000 in cash and C$375,000 in shares by the fourth year.

Moreover, Koba must invest at least $3m in exploration and development within four years, with C$200,000 in the first year and C$1m within the first two years.

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The option can be exercised before the fifth anniversary, subject to these commitments.

Upon exercising the option, Koba will gain full ownership of the claims and grant the vendor a 2% net smelter return (NSR) royalty.

Koba retains the right to buy back half of this royalty for C$1m and will reimburse the vendor C$17,305 for prior staking costs.

This acquisition follows Koba’s recent addition of the Yarramba Uranium Project in South Australia, reflecting the company’s strategy amid robust uranium prices.

The Harrier Uranium Project, located near Goose Bay and Postville in central Labrador, spans around 131km².

It includes nine prospects with rock chip samples indicating uranium concentrations exceeding 1.0% triuranium octoxide (U3O8).

Koba managing director and CEO Ben Vallerine said: “Koba’s focus remains firmly on our Yarramba Uranium Project in South Australia, where drilling is set to commence next month, but the opportunity to acquire the extremely prospective Harrier Uranium Project, for minimal cost, was too good to pass up.

“This additional project allows us to continue to leverage on our North American uranium experience and will increase our chance of making a significant uranium discovery in the near term.

“The Harrier Project includes nine very exciting prospects. At each of these nine prospects rock chip assay results in excess of 1.0% U3O8 have been returned, including assays up to 5.83% U3O8. Incredibly, very little exploration, or drilling, has been undertaken previously.”