Australian explorer Black Range Minerals said it will acquire a 49% stake in the Hansen uranium deposit in Colorado, US, from NZ Minerals.

The deal comes after Canadian company Uranium One defaulted on its option to buy an 80% interest in NZ Minerals’ interest in the Hansen deposit.

As a result, Black Range Minerals’ agreement with Uranium One to jointly pursue the acquisition and development of uranium deposits within the Tallahassee Creek district of Colorado has been terminated.

In return, NZ Minerals will receive $1m-worth of shares in Black Range Minerals

A further $2m of shares in Black Range Minerals and $2m cash will be issued to NZ Minerals on, or before, the project reaches commercial scale production.

Black Range will pursue the acquisition of the remaining 51% interest in the project, the company said.

NZ Minerals will retain a 1.47% royalty interest in the project’s production.

The project is located adjacent to Black Range’s Taylor Ranch uranium project, which has indicated and inferred resources of 55.5 million pounds of U3O8.

The acquisition of 49% in the Hansen project is an important achievement for the company as the Tallahassee Creek district is expected to have more than 100 million pounds of U3O8, Black Range said.