Energy and Minerals Australia has been granted mining leases for its Mulga Rock project, days after settling litigation that had stymied development.
The Perth-based uranium hopeful said the grant of the mining leases was a significant achievement in the development of the Mulga Rocks project.
EMA announced earlier this week that legal action by Yarri Mining, which had laid claim to the deposit, thought to be one of WA’s biggest, had been settled for $3 million, payable in two tranches.
The company said it would pay the second $1.5 million tranche to Yarri upon receipt of the mining leases.
“This news marks a major milestone for Energy and Minerals Australia’s shareholders and paves the way for continued development of WA’s largest independently-owned uranium asset,” chief executive Shane McBride said.
“On behalf of all shareholders, we would like to thank everyone involved in resolving these issues and facilitating the granting of these tenements.
“The Mulga Rocks project is a long life, low cost development opportunity and it is pleasing to see the positive progress the company has made in recent days to advance this asset.”
EMA stocks gained 11 per cent on the ASX today, finishing trade at 9 cents.