Okapi Resources has swelled its North American energy ground after entering into a binding agreement with STB Minerals to pick up a 51 per cent interest in the high-grade Hansen uranium deposit in Colorado, USA.
The deal stretches the company’s resources at its Tallahassee project by 81 per cent to 49.8 million pounds of triuranium octoxide and boosts the grade by 10 per cent to 540 parts per million triuranium octoxide.
Okapi says the acquisition has “transformed” it into one of the country’s most significant uranium players and helps elevate its status amongst the new-energy glitterati.
The Hansen uranium deposit is positioned around the southern border of Okapi’s wholly-owned Taylor and Boyer uranium deposits.
Hansen contains a JORC mineral resource of 22.2 million pounds triuranium octoxide at 610 parts per million triuranium octoxide, all now completely under the control of Okapi following the acquisition.
As a result, Okapi's updated JORC mineral resource for the broader Tallahassee uranium project now weighs in at 42.0 million tonnes at 540ppm for 49.8 million pounds of triuranium octoxide.
Following the deal, the company says it will continue to explore other opportunities to strengthen its presence in the region.
The Hansen deposit was discovered in the late 1970s with the site fully permitted to production following feasibility studies. The plan was halted following the collapse of the uranium market in 1982.
When ASX-listed explorer Black Range Minerals began acquiring uranium leases in the Tallahassee district in 2006, activity in the area resumed.
Black Range had procured the majority of the district's mineralisation by 2010 and completed multiple drilling programs leading to a mineral resource of 90.4 million pounds of triuranium octoxide at 600ppm triuranium octoxide.
Under the terms of the deal, Okapi and STB Minerals have agreed to an eight-year option to purchase the 51 percent mineral interest in the Hansen uranium deposit.
Okapi will hand over US$50,000 to STB on the execution of the binding term sheet and US$450,000 if a definitive option agreement is signed within 60 days of the term sheet.
The deal will also allow Okapi to hold onto the option for five years by paying US$250,000 per year and another three years by paying US$500,000 per year, subject to inflation.
Importantly, Okapi has the right to conduct mineral prospecting, exploration, development and mining on the Hansen uranium project ground during the option period.
Okapi can exercise the option at any time during the eight years by paying US$5,000,000, at which point STB Minerals will transfer its entire 51 per cent mineral interest to Okapi, with a 1.5 per cent net return royalty reserved.
Okapi will now kick off metallurgical testing and preliminary conceptual mine design to determine the best work program to implement in the future with a particular focus on assessing the projects in situ recovery capabilities – the most common method for extracting uranium in the US is also considered the safest.
With uranium prices now above the magical US$50 mark, Okapi looks well stocked to ride a new uranium boom that could foster a string of new billion-dollar energy outfits.
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