West Perth-based Exco Resources Ltd will work with Sydney-based Paradigm Metals Ltd to explore for uranium and other commodities on their Queensland tenements through a joint venture project, the companies have announced.
The full text of a joint company announcement is pasted below
- Exco Resources (EXS) and Paradigm Metals (PDM) to jointly explore for uranium and other commodities within the Toolebuc Limestone Formation, east of Cloncurry Queensland
- Exploration to be funded on a 50:50 basis in a separate, jointly-owned company to allow for future funding alternatives, including a possible spin-off
Exco Resources (EXS) and Paradigm Metals (PDM) are pleased to announce a joint initiative to explore for uranium and other commodities within the Toolebuc Limestone Formation on both companies' exploration permits (EPMs) located east of Cloncurry Queensland (see Figure 1). This initiative will combine into one contiguous package an otherwise fragmented exploration play. The total area of the initiative is approximately 600 square kilometres (see Figure 2).
The EPMs are considered prospective for a variety of commodities including uranium (see Figure 3), molybdenum, and vanadium. The Toolebuc Limestone, part of the Mesozoic Eromanga Basin sequence, lies above an oil shale sequence, which will also be reviewed for its potential.
The companies will fund the initiative on a 50:50 basis, and exploration will initially be managed by Paradigm. The intention is to transfer the EPMs into a separate, jointly-owned company to allow for possible future funding alternatives including a potential spin-off. The joint initiative will include:
- EPMs 15208 and 16113 held by Exco Resources Ltd, and
- EPMs 15325, 15906, 15931, 16073 and 16200 held by Paradigm Queensland Pty Ltd;
The arrangements are subject to finalisation of appropriate documentation and any necessary Government approvals.
Importantly from Exco's perspective, this initiative will allow focus to be maintained on the Company's portfolio of Cu-Au-U3O8 projects in the Cloncurry region, whilst providing an additional opportunity to create value for shareholders.
