PERTH (miningweekly.com) – Junior DevEx Resources has entered into an earn-in agreement over the Murphy West uranium project, in the Northern Territory.
Under the earn-in agreement with private explorer Transition Minerals, DevEx could earn up to a 75% interest in the uranium mineral rights over seven granted exploration tenements covering 5 000 km2 in a highly prospective, but under-explored uranium province.
DevEx will spend A$3.5-million on the project area within a five-year period, after which Transition Minerals will be free-carried to the completion of a feasibility study.
Standard dilution clauses will apply on the formation of a joint venture, and should a partner’s interest dilute to below 10%, it would be automatically converted to a 1% net smelter royalty over the uranium minerals.
“Given the geological similarities between the uranium deposits of the Southern McArthur basin and the Alligator Rivers uranium province where we are currently operating, this represents an attractive and low-cost option for us to substantially expand our uranium exploration footprint in Northern Australia,” said DevEx MD Brendan Bradley.
“We intend to fly an extensive airborne radiometric survey over the ground at the start of the next field season, which will give us a good picture of priority areas for field investigations over what could be an exciting emerging uranium province to further complement our Nabarlek project.”