TORONTO (miningweekly.com) – Uranium junior Strathmore Minerals said late on Tuesday it agreed to sell a 13.9% stake to Korea Electric Power Corporation for C$0.55 a share, or $8-million.

The TSX-listed company said the agreement also included an off-take provision, without providing details.

Strathmore will use the proceeds to fund development of its Gas Hills project in Wyoming, and Kepco will be allowed to earn a 40% stake in the properties for an additional $32-million spent over three years.

“Kepco is known for their leadership and foresight in providing long-term solutions for the development of safe and reliable nuclear power and investment in sustainable uranium supplies,” Strathmore CEO David Miller said in a statement.

The Vancouver-based junior hopes to receive a permit to build a mine at Gas Hills in the first quarter of this year.

Strathmore already has a joint venture partnership with Japan’s Sumitomo at its Roca Honda mine in New Mexico.

Shares in the firm closed 4.4% higher on Wednesday at C$0.48 apiece.
 

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