Photo by: Bloomberg
TORONTO (miningweekly.com) – TSX- and ASX-listed Laramide Resources on Wednesday reported that it had entered into a sale purchase agreement (SPA) to buy out partner Gulf Copper’s full interest in the Gulf JV tenement EL 29898 in Australia’s Northern Territory, thereby further consolidating interest in its flagship asset.
Laramide currently had the right to earn 90% of the neighbouring Westmoreland uranium project by carrying Gulf through the completion of a bankable feasibility study and obtaining a mine permit. This agreement would be terminated when Laramide had consolidated ownership of the project.
Under the terms of the SPA, Laramide would have to pay Gulf A$125 000 in three payments comprising A$25 000 immediately, a further A$25 000 subject to completing certain conditions and the balance of A$75 000 on transfer of the tenement title.
The SPA was conditional on receiving all necessary government and regulatory approvals to complete the transaction.
The Gulf JV tenement covered an area of 227 km2 and lay next to the Westmoreland deposit. This acquisition was consistent with Laramide's long-term strategy to consolidate the prospective tenure around the Westmoreland project on both sides of the Queensland/Northern Territory border.
Gulf was in the process of divesting noncore assets in its strategic move to focus on manganese.
Laramide had touted the Westmoreland project as having compelling economics, even at low prices, currently holding compliant resources of 51.9-million pounds of uranium. This included 36-million pounds in the indicated category contained in 18.7-million tonnes at an average grade of 0.089% uranium, and a further inferred 15.9-million pounds contained in nine-million tonnes at an average grade of 0.083% uranium.