The share price of ASX-listed Koba Resources jumped 12.5% on Monday, as the company announced a uranium acquisition deal with fellow listed Havilah Resources in South Australia.
In terms of a binding agreement with Havilah, Koba will have the right to acquire an 80% interest in the uranium rights within a 4 000 km2 tenement package comprising the Yarramba project.
“Koba is very excited to have acquired an exceptional uranium project near two producing uranium mines within the world-class, pro-uranium mining jurisdiction of South Australia, just as the world enters a bull uranium market,” said MD and CEO Ben Vallerine.
Previous exploration within the Yarramba project has delineated extensive uranium mineralisation, including the 4.6-million pound Oban deposit.
“No exploration has been undertaken at Yarramba since 2012, therefore the 4 000 km2 project provides us excellent opportunities to make sizeable discoveries in close proximity to existing infrastructure,” said Vallerine.
Koba will hold a shareholder meeting to seek approval for the transaction. This is expected to be held in mid-March, with settlement expected to occur before the end of March.
Immediately following the completion of the transaction, Koba plans to start its inaugural drilling programme at Yarramba.
Meanwhile, Havilah technical director Chris Giles commented that the company had partnered with Koba because of the extensive sand-hosted uranium exploration expertise of its principals, its tight capital structure, supportive existing shareholder base and available cash resources.
“We are confident that Koba will carry out serious and competent exploration for Cenozoic age sand-hosted uranium in this well recognised highly prospective geological terrain in South Australia.
“The agreements with Koba are a way for Havilah to monetise a portion of its uranium assets, for which it is currently receiving no inherent market recognition,” said Giles.