East Africa Resources wins consent for Tanzanian exploration programme

26 April 2012 (Last Updated April 26th, 2012 18:30)

East Africa Resources has announced it has received approval from Mkuju Resources for its one-year exploration programme at the Mkuju South uranium project in Tanzania.

uranium

East Africa Resources (EAF) has announced it has received approval from Mkuju Resources for its one-year exploration programme at the Mkuju South uranium project in Tanzania.

Mkuju Resources, who in joint venture with Korea Resources Corporation (KORES) intends to develop the site, also approved the $3.5m financing package for the uranium project.

The exploration programme, which began in December, covers a large area following the trend from Quarto to Foolscap and to the south of Foolscap, heading towards the border with Uranex and its Likuyu North project.

The programme will investigate low order surface uranium anomalies at the site, and a drill programme will commence during the third quarter of 2012.

The move is in line with an agreement entered last year between KORES and EAF, wherein KORES will invest directly into the exploration programmes at prospecting licence application HQ-P15779, located at Mkuju South.

Under the terms of the agreement, KORES committed to a staged investment to secure a 50% interest in the uranium project, aligned with two major exploration programs at Mkuju South.

KORES will pay an initial amount of A$2m ($2m) for a 28% shareholding in the project requirements during the initial exploration program.

It will also pay a further $1.5m to acquire a 22% equity stake in the project during the second exploration programme .

Image: The xploration programme at the Mkuju South uranium project covers a large area following the trend from Quarto to Foolscap and to the south of Foolscap. Photo: Svdmolen.