Cameco, UEQ in WA uranium joint venture

Canadian uranium giant Cameco has expanded its presence in Western Australia, signing a joint venture deal with Uranium Equities (UEQ) over a project located near the sizeable Kintyre uranium deposit.

Both companies will jointly explore the three exploration applications that make up the Rudall River uranium project, located in the east Pilbara.

Under the agreement, Cameco will hold a 60 per cent of the JV with UEQ to hold the balance.

Both companies will jointly fund exploration activities in proportion to their respective interests.

Cameco will be the manager of the JV.

"We are excited about this additional Joint Venture with Cameco in this highly prospective area," UEQ managing director Mark Chalmers said.

"We look forward to our joint exploration efforts in this area."

UEQ's other joint ventures with Cameco cover the Lake Blanche project in South Australia and the Alligator Rivers project in the Northern Territory.

Rudall River is located around 25 kilometres away from the Kintyre uranium deposit, which Cameco, along with Mitsubishi Development, bought from Rio Tinto last year for $US495 million.

Cameco, which has opened an office in Perth, has previously said that it will spend around $9 million over the next 12 months on exploration work at Kintyre.

Cameco holds 70 per cent of Kintyre.