Avalon acquires uranium tenements for $1.3m

West Perth-based mineral explorer Avalon Minerals Ltd has acquired a 1,900 sq km exploration portfolio from Don Boyer's Resource Properties Pty Ltd in a cash and scrip deal worth around $1.3 million.

The company said in an announcement the acquisition, paid for through the issue of 4 million Avalon shares and $100,000 cash, represents its first significant acquisition since listing on the Australian Securities Exchange earlier this year.  

The uranium-richportfolio, which comprises 13 exploration licence applications located in the Kimberley and Yilgarn regions, brings the total uranium-prospective ground under Avalon's control to 2,800sq km.  

Avalon managing director David McSweeney said the company was also assessing additional Australian and international opportunities to expand its uranium exploration portfolio.

The full text of a company announcement is pasted below

Diversified explorer Avalon Minerals Ltd (ASX: AVI) has significantly strengthened its position in Australian uranium exploration after securing the acquisition of a substantial exploration portfolio covering 1,900km2 in Western Australia's Kimberley and Yilgarn regions from privately held company Resource Properties Pty Ltd.  

Avalon said today (Thursday) that it had reached agreement to purchase all of the issued capital of Resource Properties Pty Ltd, from interests associated with well-known Western Australian mining identity, Mr Don Boyer, for total consideration comprising four million Avalon shares and $100,000 cash. This represents Avalon's first significant acquisition since its successful listing on the ASX earlier this year.  

The Resource Properties acquisition - comprising 13 Exploration Licence Applications (ELA's) including some of Western Australia's most prospective uranium acreage - significantly enhances Avalon's existing uranium inventory, which includes the 900sq km Marloo Project located in the Pilbara region of WA. The acquisition brings the total uranium-prospective ground under Avalon's control to 2,800sq km.  

Avalon's Managing Director, David McSweeney, said the Company was also assessing additional Australian and international opportunities to further expand its uranium exploration portfolio, with the Resource Properties acquisition signaling an increased strategic focus in this area alongside its zinc exploration projects in the Lennard Shelf region of Western Australia.  

The Resource Properties portfolio comprises two new Kimberley Exploration Licence Applications and 11 Yilgarn Exploration Licence Applications, all of which have either known uranium occurrences or the potential for uranium mineralization and are considered highly prospective for roll-front, unconformity and calcrete-hosted uranium mineralization.  

Several tenements and key exploration targets are located in regional proximity to major uranium deposits, including Yeelirrie (BHP Billiton), Oobagooma (Paladin Resources), and Wondinong (Aura Energy).  

The acquisition further demonstrates the proactive approach taken by Avalon since listing on the ASX on March 22 2007, following a successful $3.5 million IPO. Avalon is conducting a major electromagnetic (EM) survey over the Marloo Project, targeting unconformity-styled uranium mineralisation, while simultaneously exploring its Lennard Shelf zinc and Paterson Range copper-gold projects and assessing additional growth opportunities.  

"From the outset, Avalon set out to build a robust minerals business based on expertise, experience and the best exploration opportunities available for its time," Mr McSweeney said. "We have spread our risk and we are now actively progressing our zinc and base metals exploration projects in conjunction with uranium exploration at Marloo, which is located just 40km from the Kintyre uranium deposit. Our uranium portfolio has now been substantially enhanced through the acquisition of the Resource Properties portfolio."  

"This is a significant acquisition which really positions Avalon as one of the leading junior uranium explorers in Australia, complementing our existing zinc exploration activities in the Lennard Shelf region," he said.  

"We are planning a very active uranium exploration program over the next 12 months which will include a data review, site visits, various new radiometric surveys, sampling and drilling across the new portfolio of tenements," Mr McSweeney said. "This opens up an exciting new exploration front for the Company with the potential to deliver a steady exploration news flow as we commence field activities in the near future."