Shares in Oklo Uranium surged after it announced it had acquired a 70 per cent interest in a Namibian uranium project located near Paladin Energy's Langer Heinrich uranium mine.
Nedlands-based Oklo said it had acquired the interest in the Hoasib project from African Uranium, an unlisted public company that counts Cape Lambert Resources as a shareholder.
The deal is valued at $20 million, comprising of $17 million scrip and $3 million cash. The transaction will see Oklo hold a 70 per cent interest in Green Mineral Resources Pty Ltd, the holder of the Hoasib project.
Shares in Oklo jumped 6.1 cents, or 113 per cent, to a high of 11.5c before easing to 8.6c at 12:04 AEDT.
Oklo said today it will carry out a capital raising to fund the cash component of the acquisition and also to fund an extensive exploration program at the project.
Cape Lambert will also receive a transaction fee of 25 million unlisted Oklo options with an exercise price of 5.5c.
Cape Lambert and Africa Uranium will also be given the opportunity to appoint members to Oklo's board.
The deal is subject to due diligence and approval from Oklo shareholders. Completion of the acquisition is expected on May 21.