West Perth-based mineral explorer Albidon Ltd will allow fellow West Perth company African Energy Resources Ltd to take a 30 per cent stake in two Zambian uranium projects for $1 million, the company has announced.
Under a joint venture agreement between the two companies, African will earn a further 40 per cent stake in the projects after funding pre-feasibility studies on the two sites.
The full text of an Albidon announcement is pasted below
HIGHLIGHTS:
- Albidon has finalised a joint venture agreement with African Energy Resources Limited ("African Energy") covering the Chirundu and Kariba Valley uranium projects in Zambia (see Diagram 1).
- The Chirundu Project includes the Njame Uranium Deposit and the recently discovered Gwabe Uranium Prospect.
- African Energy has expended AUD1 million on the Chirundu Project and has thereby earned an initial equity interest of 30% in the property, with the right to earn up to a 70% interest by completion of a Pre-Feasibility Study.
- African Energy is continuing an aggressive exploration programme in the region, including sampling and drilling at the nearby Kariba Valley Project.
Background
African Energy is exploring for uranium on a number of Albidon's mineral tenements in Zambia under an Exploration Cooperation Agreement ("ECA") In January 2007, African Energy provided notice to Albidon of its intention to earn an equity interest in two Target Areas within the ECA, namely the Chirundu Project and the Kariba Valley Project (see Diagram 1). Albidon and African Energy have now formed a joint venture for the purpose of exploring and developing uranium, coal and coalbed methane resources within these two Target Areas.
Under the terms of the joint venture, African Energy may earn a 30% interest in each Target Area by sole funding at least AUD1 million exploration on each Target Area and a further 40%, to a total 70% interest, on sole funding of a Pre-Feasibility Study on resources identified within the Target Area.
African Energy has recently completed AUD1 million of expenditure in respect of the Chirundu Project, and has thereby earned an initial 30% interest at Chirundu. African Energy is continuing an extensive exploration programme on the Chirundu Project, in addition to ongoing sampling and drilling on the Kariba Valley Project to the south (see Diagram 1).
