Subiaco-based Deep Yellow will team up with Toro Energy to explore uranium tenements in Namibia.
Under the JV deal, Deep Yellow has agreed to spend $3.5 million over the next two-and-a-half years on three exclusive prospecting licences held by Toro.
Following exploration spend, Deep Yellow will then be entitled to 65 per cent of the JV while Toro will retain a 25 per cent.
The balance will be held by the Namibian Black Economic Empowerment Company and Sixzone Investments.
The announcement is below:
There is to be an accelerated uranium exploration campaign by two Australian explorers in the African nation of Namibia under a joint venture agreement announced today by Toro Energy Limited (ASX: TOE "Toro") and Deep Yellow Limited (ASX: DYL "DYL").
The joint venture, the first between the two companies in Africa will see DYL (through their wholly owned Namibian subsidiary Reptile Mineral Resources and Exploration (Proprietary) Limited (Reptile)) spend A$3.5 million over the next two and a half years on three Exclusive Prospecting Licences (EPLs) held by Toro's Namibian subsidiary Nova Energy Namibia (Proprietary) Limited (Nova).
Reptile will then be entitled to gain a 65% share of the Joint Venture. Toro will retain 25% with Namibian Black Economic Empowerment (BEE) Company, Sixzone Investments Proprietary Limited, holding a 10% share. Since late March any company applying for renewal of EPLs is being informed by the Ministry of Mines and Energy (MME) of a requirement for involvement of a BEE partner before renewals will be granted.
The new exploration partnership evolved from Toro's previously announced review and restructuring of African interests to provide increased shareholder value, more aggressive project advancement and allow additional focus on Toro's Australian uranium projects - particularly Wiluna (WA) and Napperby (NT) - which have which have the potential for near-term production.
Reptile has a substantial exploration base at Swakopmund, close to the exploration areas and a Namibian exploration team with a proven record of uranium discovery. The Namibian company is now able to commence work following the grant of renewals for the three Toro-held EPLs, (3668, 3669 and 3670) by the MME and the approval of the joint venture arrangement by the Minister.
The location of Toro's EPLs in relation to DYL's uranium tenements and to other significant uranium projects and mines and include:
- EPL 3668 lies immediately downstream of the operating Langer Heinrich Uranium mine with the potential for the discovery of a similar style mineralization. Exploration will focus on fully evaluating the buried palaeochannels within this tenement.
- EPL 3669 is located immediately south of where Bannerman Resources are exploring uranium rich granites known as Alaskites at their Etango Project. There is also potential for uranium mineralisation associated with magnetite-skarn mineralization similar to the INCA Project discovery announced by Deep Yellow (ASX release 23/04/2009).
- EPL 3670 is in the southern part of the Erongo district adjacent to the Aussinanis calcrete deposit being explored by DYL. The tenement has similar radiometric anomalies that could be evaluated with shallow drilling.
Toro will maintain an up to date knowledge of the exploration work and findings through regular meetings and briefings on progress under the joint venture agreement.