Northern Uranium Ltd announced a number of significant developments designed to reflect the evolution of the company into a multi commodity exploration vehicle and to better position it to capitalize on its expanded mineral portfolio.
The changes follow the discovery of exciting rare earth element prospects, and the expansion of its mineral interests around its flagship Gardiner Tanami project.
Northern Uranium has now acquired the pre-emptive rights for all minerals, other than uranium, from its strategic partner Areva, and agreed a number of changes to operational elements of its Strategic Alliance agreement which will enhance the company’s ability to aggressively drive value for its shareholders. In consideration for these changes, the Company has agreed to make a one-off payment of USD 500,000.
Northern Uranium has also formed a new alliance arrangement with Areva, through which Northern Uranium will operate all exploration programs in 2011/12. Previously, the uranium exploration program at Gardiner Tanami had been operated by Areva’s subsidiary Afmex. From 2011, Northern Uranium will operate the exploration program over all projects, including Gardiner Tanami and Browns Range.
Uranium remains a key focus for the Company, with Areva as a strategic partner in the Gardiner Tanami project
Highlights:
1. Agreement with Areva to acquire development rights for all minerals (other than uranium) at the Gardiner Tanami and Browns Range projects.
2. Northern Uranium to operate uranium exploration program in 2011/12
3. Proposal for name change to Northern Minerals Limited, to reflect growth and diversity of mineral portfolio
Mr George Bauk MD of Northern Uranium said the combination of these changes, following other recent developments, have the potential to increase chances of exploration success, and consequently, add shareholder value.
He said that “These changes improve the upside potential for Northern Uranium shareholders and increasingly give the Company more control over the exploration and future development of our project portfolio.”
He added that “During the past twelve months the Company has taken some significant steps to grow its portfolio, with the discovery and development of rare earth prospects, the acquisition of the John Galt project, and the acquisition of exploration ground from Ferrum Crescent. We have a prospective portfolio of uranium and rare earth projects, along with some early stage gold and base metals prospects, in what is one of the most under-explored mineral provinces in Australia. While uranium remains a key focus for the business, we believe the time is right to change the name to reflect our broadening exploration portfolio.”
Mr Baku said that “Areva remains a strategic partner in the Gardiner Tanami project and it retains the off-take rights for uranium.’
He added that following these changes, Northern Uranium proposes, subject to shareholder approval, to change its name to Northern Minerals Limited, to reflect the increasing diversity of its exploration and development focus.
