Monaro signs MoU on uranium with Sinosteel

Monaro Mining NL has signed an agreement with China's Sinosteel Corporation to assess and develop the West Perth-based company's uranium projects in the Kyrgyz Republic.

Under the agreement, Sinosteel has the right to earn a 40 per cent interest in selected projects by conducting exploration and scoping studies, and a 60 per cent interest in selected projects by completing feasibility studies.

Sinosteel may be issued share-price options of up to 1.9 million shares in Monaro, exercisable at $1.00 each.

Monaro believes the joint development of the assets with Sinosteel will provide a number of benefits to the company including access to experienced uranium exploration and production personnel and equipment; use of lower-cost Chinese engineering and production technologies; finance for ongoing exploration and assessment expenditure; and agreements to purchase uranium production on commercial terms.

Monaro chairman Warwick Gregor said it hoped in future to extend the relationship to co-operation on other Monaro uranium assets.