PERTH (miningweekly.com) – Uranium hopeful Avocet Resources has signed a farm-in and joint venture (JV) agreement with Canada’s U3O8 Corp over that company’s Cuadrada uranium project, in Argentina.
Under the terms of the agreement, Avocet could earn a majority 51% stake in the Sierra Cuadrada JV by spending $1-million in exploration over the next four years.
The ASX-listed Avocet would be responsible for managing the exploration work.
The Sierra Cuadrada project is an early-stage prospect targeting sandstone-hosted uranium mineralisation.
“With the Avocet JV, U3O8 Corp’s shareholders gain exposure to further uranium discovery potential in Argentina – a nuclear energy-producing country seeking domestic uranium supply to fuel its growing reactor fleet,” said U3O8’s president and CEO Richard Spencer.
“When its third reactor comes on line this year, Argentina will derive 9% of its electricity from nuclear, and a fourth reactor is also out for tender. Uranium is viewed as a strategic resource in Argentina where the government just signed nuclear cooperation agreements with the United Arab Emirates and China.”
In addition to its exploration assets in Western Australia, Queensland and South Australia, Avocet has JVs with uranium major Cameco in the Ashburton region in Western Australia, and another JV on a magnetite-rich iron-ore project in South Australia.
In December 2012, the explorer announced the merger with Lion One Metals to create a well-capitalised company with a diversified portfolio of precious metals, base metals and uranium projects in Fiji, Australia and Argentina.