18/04/2006 - 14:40

Western Metals to farm-in Tanzanian uranium projects

18/04/2006 - 14:40

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West Perth-based Western Metals Ltd has accepted the conditional farm-in agreement offer from Uranium Resources plc whereby Western Metals will earn a 40 per cent interest in Uranium Resource's Tanzanian prospecting licences for $2 million.

Western Metals to farm-in Tanzanian uranium projects

West Perth-based mineral explorer Western Metals Ltd has accepted the conditional farm-in agreement offer from Uranium Resources plc whereby Western Metals will earn a 40 per cent interest in Uranium Resource's Tanzanian prospecting licences for $2 million.

The board has obtained a declaration from ASIC to enable it to accept the farm-in agreement offer, on the basis that the farm-in agreement will be subject to Western Metal's shareholder approval.

The company may increase its ownershi0p to 60 per cent through the expenditure of a further $2 million on the licences. Western Metals must spend a minimum of $500,000 within 12 months of the completion of the transaction.

Uranium Resources listed on Alternative Investment Market in London in 2005 to acquire a portfolio of uranium deposits in Southern Africa and Australia in order to take advantage of the rising demand for uranium.

Uranium Resources acquired four uranium prospecting licences in Tanzania in 2005.

At market close, the Western Metals' share price was up.2 cents to 3.6 cents.

Below is the announcement:

 

ACCEPTANCE OF CONDITIONAL OFFER TO FARM-IN - URANIUM PROJECTS IN TANZANIA

The Board has obtained a declaration from ASIC under subsection 196 (1) of the Corporations Act to enable it to accept the farm-in agreement offer, on the basis that the farm-in agreement will be subject to the approval of Western Metals Limited's (Western Metals) shareholders.

Western Metals is pleased to advise that it has accepted the conditional farm-in agreement offer from Uranium Resources plc (URA), a company listed on the Alternative Investment Market (AIM) in London, whereby Western Metals will earn a 40% interest in URA's 100% owned Tanzanian Prospecting Licences through the expenditure of A$2 million on the licences.

Western Metals may increase their ownership to 60% through the expenditure of a further A$2 million on the licences. Western Metals must spend a minimum of A$500,000 within 12 months of the completion of the transaction.

 

 

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