Subiaco-based explorer Uramet Minerals has agreed to sell its Barr Creek project tenements in Queensland to the Joe Gutnick-led Legend International Holdings for $750,000.
The sale includes the two tenements and one tenement application, and is conditional on regulatory approvals including the Foreign Investment Review Board.
Legend already controls substantial phosphate interests in the Mt Isa region, including amongst others, the Lady Jane and Lady Annie phosphate deposits immediately adjacent to the Barr Creek Project area.
The D-Eight and Lancewood phosphate occurrences in the Barr Creek Project area appear to be extensions of Legend's Lady Jane deposit and are therefore a natural fit with their existing activities.
Legend is well funded and is actively implementing its phosphate development strategy. This includes plans to develop infrastructure, phosphate mines and beneficiation process plants in the Mt Isa region to exploit its known phosphate deposits.
Legend is therefore better placed than Uramet to more quickly advance the Barr Creek Project to its full potential.
This sale is consistent with Uramet's strategy to scale back exploration spending and to maximise its cash reserves to ensure Uramet remains in a strong position to see through the current global financial crisis and to be better placed to take advantage of any opportunistic acquisitions of more advanced projects that may arise.
