U3O8 finalises Dawson Hinkler sale

West Perth-based U3O8 has executed a Definitive Agreement and Royalty Deed to complete the sale of its Dawson Hinkler uranium project in WA to Toro Energy for $6.2 million.

The two companies reached a sale agreement on October 19.

Dawson Hinkler has a JORC compliant inferred uranium mineral resource of 9.5 million tonnes of ore at 293ppm U3O8 for 6.2 million pounds of U3O8.

U3O8 has also completed a scoping study on the project.

Toro owns the nearby Lake Way and Centipede uranium deposits which contain a combined resource of 20.2 million tonnes of 548ppm U3O8 for approximately 24.4 million pounds of U3O8.

U3O8 will use the funds from the sale of its Dawson Hinkler project to continue an aggressive exploration program on its quality portfolio of tenements.

This includes uranium and rare earths on its Ashburton project in WA.