TORONTO (miningweekly.com) – Canadian uranium project developer Laramide Resources has received an extension from Rio Tinto Exploration (RTX) to complete certain work programmes and satisfy minimum spending obligations under the earn-in periods on the Rio Tinto Murphy farm-in and joint venture (JV) tenements in the Northern Territory of Australia (RTX Murphy tenements).

The ASX- and TSX-listed company said this week it planned to implement an exploration programme on the prospect, which comprised geochemical sampling and field mapping of targets identified in the 16 281 line kilometre airborne geophysical survey on the RTX Murphy tenements it undertook in 2014.

The Toronto-headquartered company advised that the exploration programme would aim to define targets for follow-up drilling. However, it remained subject to certain approvals.

RTX Murphy tenements were located along strike from Laramide's flagship Westmoreland project, in north-west Queensland, and were situated geologically within the Murphy uranium province in the Northern Territory of Australia. The tenements covered an area of 966 km².

Under terms of the amended agreement, Laramide would have until November 13 to spend $1-million on the RTX Murphy tenements, having already spent about $600 000. Laramide paid A$100 000 to RTX for the extension, and other earn-in periods under the agreement were also extended.

EXTENDED PARTNERSHIP
In May 2011, Laramide announced the signing of a binding farm-in and JV term sheet with RTX.

The Murphy uranium province had produced high-grade uranium during the 1950s and stood out among the world’s attractive underexplored uranium provinces, having not seen any meaningful exploration since the 1970s, said the company in its most recent management discussion and analysis filed with Canadian securities regulators.

Under the terms of the agreement, Laramide could earn 51% in the project by spending A$10-million over a four-year period on exploration and development. The first A$1-million of this earn-in was a firm commitment by Laramide. Approval to start exploration was granted by the traditional landowners in November 2012.

The initial A$1-million expenditure had not been completed by the required date of November 2013. However, by February 2014, the company successfully negotiated an extension from RTX to November 13, 2014. The expenditure commitments under the extension agreement were again not completed and, in December 2015, Laramide had again finalised a further extension to the farm-in agreement with RTX for a consideration of $100 000.

MONGOLIAN SETTLEMENT
Meanwhile, Laramide congratulated Khan Resources on its successful outcome with the government of Mongolia regarding long-standing litigation and international arbitration related to the Dornod uranium property.

Laramide was Khan's largest shareholder at the time the property was expropriated in early 2010 and continued to hold more than three-million shares.

On May 18, Khan announced that it and the Mongolian government had signed the documentation required for the release of $70-million in settlement proceeds to Khan and also made an affirmative statement that "the company is continuing to investigate and detail options to distribute the majority of the funds remaining, after discharge of liabilities and obligations, to shareholders in a tax-efficient and timely manner. The process may entail multiple tranches".

“Laramide applauds Khan's management for both their perseverance and tenacity in pursuing a protracted and difficult process to a just conclusion but also for their willingness to return essentially all of the capital to shareholders,” Laramide noted in a statement.