PERTH (miningweekly.com) – Junior Havilah Resources has signed a binding memorandum of understanding (MoU) to explore and potentially develop its uranium interest in unlisted Aroha Resources, on the condition that that company lists on the ASX.
Conditional on Aroha listing on the ASX through an initial public offering (IPO), the unlisted company could secure the uranium exploration and mining rights for sediment-hosted uranium deposits within some of Havilah’s exploration licences.
Havilah on Wednesday told shareholders that it would maintain an interest in the venture through an anticipated 25% interest in the fully diluted share capital of Aroha at the time of the IPO, and receiving A$500 000 from the Aroha IPO proceeds within one month of the company listing on the ASX.
Havilah would also receive a 1.5% net smelter return royalty on all Aroha uranium sales revenue from within the Havilah licences after the first A$10-million of cumulative uranium sales revenue.
Furthermore, Aroha would be required to spend at least the statutory minimum expenditure commitment annually for each of the Havilah exploration licences covered by the MoU. The unlisted company would also be required to pay Havilah half of the total exploration licence rental and renewal costs starting no later than three moths after the date of the MoU.
The MoU will lapse if the IPO does not proceed within 12 months.