|30. April 2009
Australian Company to Buy Into Uranium Project
Mineral Commodities Limited (MRC) has entered into a letter of agreement with Africa Uranium Limited (AUL), which provides for MRC to have exclusive rights to fund AUL's mineral exploration activities in return for equity, the company said.
AUL is an unlisted public company with uranium projects in Namibia and South Africa.
AUL has a 70% interest in the Hoasib Project, which is located 80 km inward from Walvis Bay and the coastal town of Swakopmund.
It is partially within the Namib Park Nature Reserve in which many of the known Namibian uranium occurrences are located including the Langer Heinrich deposit being mined by Paladin Energy.
The project lies to the immediate south and east of the Langer Heinrich uranium mine.
Early work carried out has located several occurrences of uranium mineralisation. During a recent field programme, AUL drilled 11 wide spaced exploratory holes. Assay results for these holes are awaited; however, in field assessment suggests that at least three of these holes intersected uraniferous horizons.
The proximity to other uranium mines with proven reserves such as Langer Heinrich (Paladin, approx 20 km) and the Swakop River Project (Bannerman Resources, adjoining) makes this tenement an extremely exciting prospect, the company said.
The agreement, subject to satisfactory due diligence by MRC, provides for MRC to spend up to US$7 million to earn a 50% equity interest in AUL. It also provides for MRC to obtain a further 1% interest for US$700,000 to obtain a controlling interest in AUL.
In addition to the monetary spend, MRC will issue two million fully paid ordinary shares to AUL upon completion of due diligence and a further two million shares upon attaining a 50% interest in AUL.
MRC's minimum expenditure commitment is US$1 million. Should MRC cease funding after this expenditure, it shall have earned a 10% equity interest in AUL, the statement said.