PERTH (miningweekly.com) – ASX-listed Northern Minerals has struck a deal with uranium developer Toro Energy to gain full ownership of four tenements previously held in a joint venture.
With the exception of the uranium mineral rights over the tenements, Northern Minerals now had 100% of the tenements, which secured the company’s tenure over the Browns Range Dome and additional rare earth prospective ground adjacent to Boulder Ridge, in the Northern Territory.
In return for its holding in the tenements, Toro would be issued with up to A$200 000 worth of Northern Minerals shares within the next 12 months. If the company raised more than A$10-million in capital within this timeframe, this amount would be paid out in cash.
MD George Bauk said on Monday that the consolidation of the tenements into Northern Minerals’ full ownership provided potential for future growth.
“The exploration potential of the Browns Range Dome is outstanding. Its sheer size and prospectivity for further rare earths discoveries make it a strategic asset for the future development of the Browns Range project.
“This land-holding, coupled with the addition to the Boulder Ridge prospective ground further south, will be key parts in delivering on our rare earths growth strategy in the future.”
Stage 1 of the Browns Range project would incorporate the construction of a test pilot plant with a 60 000 t/y capacity to produce 49 000 kg dysprosium, in 590 000 kg/y of rare earths.
The pilot plant would run for a period of three years and would consist of both a beneficiation and hydrometallurgical process.
The results from the Stage 1 operation would be incorporated into a bankable feasibility study, which was aimed at reducing mining costs, boosting production, and producing a premium product.