Korea Resources Corporation (Kores) has agreed to invest $3.5 million over two years for a 50% stake in the Mkuju South uranium project in Tanzania.
The agreement between Kores and Australia-based East Africa Resources Ltd was formally signed recently in Seoul, South Korea. Kores will now commit to invest $2 million to "satisfy work obligations and expenditure requirements" during an initial exploration program for Mkuju South, to be undertaken within the next 12 months. In return, it will receive a 28% stake in the project. Kores will then invest a further $1.5 million to fund a second exploration program during the following 12 months. Its share of the project will then increase to 50%.
In addition to its shareholding in Mkuju South, Kores will earn the right to buy up to 100% of the uranium subsequently produced at the project. The terms of those sales have yet to be agreed upon by Kores and East Africa resources.
East Africa Resources’ Mkuju Project area is in the southern region of Tanzania, immediately adjacent to Uranium One's Nyota project on its eastern boundary and also sits above Uranex Ltd's Likuyu North project on its southern boundary.
State-owned Kores was formed in 1967 to further Korea's access to strategically important mineral resources - including uranium - both domestically and internationally. It has previously declared an intention to invest heavily in uranium and copper mines in Africa and South America.
Kores president Kim Shin-Jong commented, "We are pleased to be partnering East Africa Resources in their exploration work in Tanzania. Kores recognises the potential of the region to develop into a mining centre of international significance."
Researched and written
by World Nuclear News