Listed (TSX:LAM; ASX:LAM)
TORONTO, Nov. 6, 2018 /PRNewswire/ - Further to its
announcement on 16 July 2018,
Laramide Resources Ltd. ("Laramide" or the "Company")
(TSX:LAM; ASX:LAM) is pleased to announce it has now
completed the conditions precedent for the acquisition of the
Murphy Project from Rio Tinto Exploration Pty Limited ("RTX"). The
Company now holds a 100% interest in the Murphy Uranium Tenements
in the Northern Territory of Australia (the "Project"), which it had
previously been exploring under a farm-in agreement with RTX.
The strategically located Project consists of 683.5
km2 of granted exploration tenure, which lies contiguous
to and along strike from Laramide's Westmoreland Project in
northwest Queensland. The Project
will enhance Laramide's dominant landholding in a highly
prospective and underexplored uranium province.
The Northern Territory of Australia is a jurisdiction that is supportive
of both uranium development and mining and hosts several well-known
deposits including the Ranger Mine which has produced in excess of
120,000 tonnes of U3O8 over a 35-year
period. The new Agreement is structured to incentivize a
return to active exploration on the Project while providing RTX
with an opportunity to participate should a world class discovery
be made.
Terms of the Sale Purchase Agreement:
As consideration for the sale by RTX of its interest in the
Project to Laramide, the Company has made a AUD$150,000 cash
payment to RTX and paid all necessary stamp duty associated with
the transfer.
Under the SPA the Company is also required to make the following
payments:
- A further payment of AUD$150,000 on or before the date which is
12 months from the closing date; and
- a further payment of AUD$150,000 on or before the date which is
24 months from the closing date.
Laramide can elect to make these payments in cash or common
shares at the Company's discretion. Should the common share option
be selected, the common shares (or CDI's) will be issued to RTX at
a price which is at a discount of 10% to the value of the weighted
average price of the common shares on the TSX over the 10 days
prior to the date of issue.
The Agreement allows for RTX to have Clawback Rights, a
Production Payment, an NSR Royalty and Rights of First Refusal
under certain conditions.
The Clawback Rights can be exercised, on a one-time basis, if
Laramide discovers and defines a Measured and Indicated Mineral
Resource Estimate on the Project with an In Situ Value estimated in
excess of US$1 billion (US$1,000,000,000). This would allow RTX to
Clawback a 51% interest in the newly formed (the "Joint
Venture") on payment to Laramide of two times their
expenditures to that date.
Unless and until RTX has exercised, or waived, its Clawback
Right, Laramide would also be obligated to make a one off payment
equal to 1% of the Pre-Production Expenditures (the "Production
Payment") on the Project from first revenues and also
reserves for the benefit of RTX a net smelter return royalty of two
per cent (2%) in respect of all product produced from any mining
within the Project Area.
RTX will also retain a right of first refusal over future
divestiture of the Project under certain conditions.
The Project comprises exploration licences, EL 9319 (411
km2) and EL 9414 (272 km2), together with
several associated exploration licence applications, which are
situated geologically within the highly prospective Murphy Uranium
Province. The Murphy Uranium Province produced high-grade uranium
during the 1950s and stands out amongst the world's attractive
underexplored uranium provinces, having not seen any meaningful
exploration since the 1970s (see press releases May 16, 2011; October 6,
2014; May 24, 2016, and
July 16, 2018).
Completion of Airborne Gravity Gradiometry Survey
The Company has recently completed the acquisition of high
resolution Falcon Airborne Gravity Gradiometry ("Falcon AGG") over
the contiguous Queensland and
Northern Territory tenure highlighted in Figure 2. The Company is
awaiting final data transfer from CGG Multiphysics.
The Westmoreland exploration
model involves targeting mineralisation associated with chlorite
and haematite alteration confined by large fault systems and in
association with intrusive dykes.
Structural information is key in target development. The Falcon
AGG survey will provide structural information by highlighting
basement architecture and faulting including those which may
penetrate the sedimentary package and hence be conduits for
mineralising fluids.
The Survey may also enable the mapping of alteration associated
basement features and structure and mapping of the location and
extent of volcanic units and intrusives.
The Northern Territory government has awarded Laramide a AUD
$100,000 co-funding grant towards the
completion of the Survey under the Geophysics and Drilling
Collaborations program.
To learn more about Laramide, please visit the Company's website
at www.laramide.com.
About Laramide Resources:
Laramide is a Canadian-based company with diversified uranium
assets strategically positioned in the
United States and Australia
that have been chosen for their low-cost production potential.
Laramide's recently acquired Church
Rock and Crownpoint
properties form a leading In-Situ Recovery (ISR) division that
benefits from significant mineral resources and near-term
development potential. Additional U.S. assets include La Jara Mesa
in Grants, New Mexico, and
La Sal in the Lisbon Valley
district of Utah. The Company's
Australian advanced stage Westmoreland is one of the largest uranium
projects currently held by a junior mining company. Laramide is
listed on the TSX: LAM and ASX: LAM.
Forward-looking Statements and Cautionary Language
This News Release contains forward looking statements which are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the forward looking statements. The Company does not intend to
update this information and disclaims any legal liability to the
contrary.
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SOURCE Laramide Resources Ltd.
