Western Australian-headquartered uranium explorer Redport Ltd has today signed an agreement with View Resources to acquire View's highly prospective uranium tenements, at its Lake Maitland uranium project near Wiluna in WA's eastern goldfields.
Western Australian-headquartered uranium explorer Redport Ltd has today signed an agreement with View Resources to acquire View's highly prospective uranium tenements, at its Lake Maitland uranium project near Wiluna in WA's eastern goldfields.
The Lake Maitland project has an insitu metal value of more than $900 million, and is one of Australia's largest unmined uranium deposits.
The View tenements, which are located to the west and south of Redport's existing Lake Maitland uranium deposit, triple Redport's total exploration area in the Lake Maitland region.
Under the terms of the agreement Redport subsidiary, Redport Exploration Pty Ltd, will acquire View's mining tenements for $275,000 plus 2.2 million fully paid ordinary shares in Redport - valued at $275,000 based on ta share price of 12.5 cents.
If Redport identifies a JORC compliant uranium resource of 2,500 tonnes or more within the acquired tenements, it has agreed to issue View an additional 1.1 million shares in Redport.
The agreement is subject to a 14-day due diligence period.
Also, Redport has agreed to acquire the remaining 20 per cent of its subsidiary Simmax Mining Pty Ltd for 8 million Redport shares, which will be worth around $1 million at current Redport's current share price.
Simmax holds uranium and gold exploration properties, and the transaction will allow Redport to realise the maximum value of its gold assets and consolidate its exploration interests.
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REDPORT TRIPLES EXPLORATION AREA AT LAKE MAITLAND URANIUM DEPOSIT
Redport Limited (ASX: RPT) has today signed an agreement with View Resources
("View") to acquire approximately 160km2 of highly prospective land surrounding its
Lake Maitland Uranium Project in Western Australia. (Refer Fig 1.).
The Lake Maitland Project is located 130km southeast of Wiluna, Western Australia and,
with an insitu metal value of more than A$900 million, is one of Australia's largest
unmined uranium deposits.
The View tenements, which are located to the west and south of Redport's existing Lake
Maitland Uranium Deposit, triple Redport's total exploration area in the Lake Maitland
region.
The newly acquired ground has potential to hold further uranium mineralisation as
drilling by various mining and oil companies in the 1970's intersected carnotite to the
west and south of the Lake Maitland Deposit.
Under the terms of the agreement, Redport Exploration Pty Ltd (a wholly owned
subsidiary of Redport Limited) will acquire 100% of View's mining tenements M53/571
through to M53/587 (inclusive), E53/1210, E53/1211 and P37/6943 for a total
consideration of A$275,000 cash and 2.2 million fully paid ordinary shares in Redport,
subject to any existing encumbrances and interests. View will retain the right (on
commercial terms) to toll treat any gold derived from the area at its Bronzewing Plant.
If Redport identifies a JORC compliant uranium resource of 2,500 tonnes or more within
the acquired tenements, it has agreed to issue View an additional 1.1 million fully paid
ordinary shares in Redport. The agreement is subject to a 14-day due diligence period.
Lake Maitland Exploration Tenements
The tenements subject to this agreement contain 3km of the Paleo-channel upstream (to
the west) and 12km downstream (to the south) giving Redport access to an additional
15km of the Lake Maitland uraniferous Paleo-channel.
Widely spaced drilling in the 1970's by Mt Isa Mines, BP Minerals and others intersected
carnotite to the west and to the south including portions that abut and are contiguous
with the Lake Maitland Deposit.
Closely spaced drilling will be required to define the limits and significance of these
uranium occurrences.
Acquisition of remaining interests in exploration tenements
Redport has also agreed to acquire the remaining 20% of securities in its subsidiary
Simmax Mining Pty Ltd for the issue of 8 million fully paid ordinary shares in Redport. In
2005 Redport acquired the majority interest in this company, which holds uranium and
gold exploration properties at Angelo River, Mt Clement and Yilgarn as well as the
Acclaim Uranium Ltd uranium database.
On completion Redport will hold a 100% interest in Simmax, which will allow Redport to
effectively realise the maximum value of its gold assets as a package and consolidate its
exploration interests.
About Report Limited:
Redport is an Australian Stock Exchange listed company in the mineral resource sector with a
focus on building its uranium resource base. Report holds 100% interest in the advanced Lake
Maitland Uranium Project in Western Australia and has exploration projects within Western
Australia and South Australia. The Lake Maitland deposit contains a JORC compliant resource
estimate which totals 15.2 million tonnes at a grade of 0.52kg/tonne U3O8 for 7800 tonnes (17
million pounds) of U3O8. Redport also holds a royalty to the Langer Heinrich Uranium Project in
Namibia which is expected to be in production in 2006.
