Stonehenge Metals has signed a deal with Korea Resources Investments and Development to provide the framework for a joint venture between the two companies.
Stonehenge said the purpose for the joint venture was to accelerate the development of the mineral exploration rights and properties held by Stonehenge, with a focus on the vanadium and uranium potential of the Daejon project in South Korea.
Through a memorandum of understanding, Stonehenge said it hopes to gain access to test 36,000 metres of mineralised historical core stored at the Korea Institute of Geoscience and Mineral Resources.
The company also hopes to upgrade its current vanadium and uranium resource estimates, prepare a pre-feasibility study, work programs and budgets, and work out cost sharing plans on activities in the area.
“The MOU with KORID is a pivotal even for Stonehenge in Korea,” Stonehenge chairman Richard Henning said.
“A joint venture with KORID would materially enhance our efforts to extract value from the significant vanadium and uranium potential at Daejon.”
The company also said that had arranged $120,000 of working capital funding through a convertible loan, provided by the directors of Stonehenge, which would be converted into Stonehenge shares.
Stonehenge shares closed 11 per cent lower at 0.8 cents per share.