Kepco to invest in US uranium project
08 August 2011
Canada's Strathmore Minerals has entered into an agreement with Korea Electric Power Corporation (Kepco) to fund exploration of its Gas Hills uranium properties in Wyoming. Under the agreement, Kepco will buy $8 million of shares in Strathmore, as well as providing a $2 million "project development allowance" to be used for a first year Phase I exploration and development program of the Gas Hills Beaver Rim Area and for completing a pre-feasibility study for all the Gas Hills uranium properties. Subject to the success of Phase I, Kepco may enter into a Phase II program, allowing it to earn-in up to a 40% interest in the Gas Hills properties, for an additional $35 million in expenditures over the subsequent three years. A definitive agreement is expected to be signed by the end of September, under which subsidiaries of Strathmore and Kepco will form a 60/40 limited liability company for the phased joint venture. South Korea's 21 nuclear power reactors - all operated by Korea Hydro & Nuclear Power (KHNP), a Kepco subsidiary - provide almost 40% of its electricity, but rely on imported uranium to fuel them.