Red Metal and Cameco Australia have signed a farm-in and joint venture agreement for uranium exploration in Red Metal's Lakes uranium project in the Frome sub-basin of South Australia. The agreement, announced on 13 May, grants Cameco an exclusive right over a six-year period to explore for uranium in each of the four project tenements. Cameco can earn up to 51% interest in a tenement conditional on them sole-funding A$4 million ($3.5 million) for exploration. To obtain a 51% interest in all four tenements would therefore require Cameco to fund A$16 million in total. Once Cameco has earned 51%, Red Metal can elect to contribute to further exploration at 49% interest or reduce to a 30% interest free-carried to a decision to mine.
Exploration deal for Lakes
Red Metal and Cameco Australia have signed a farm-in and joint venture agreement for uranium exploration in Red Metal's Lakes uranium project in the Frome sub-basin of South Australia. The agreement, announced on 13 May, grants Cameco an exclusive right over a six-year period to explore for uranium in each of the four project tenements. Cameco can earn up to 51% interest in a tenement conditional on them sole-funding A$4 million ($3.5 million) for exploration. To obtain a 51% interest in all four tenements would therefore require Cameco to fund A$16 million in total. Once Cameco has earned 51%, Red Metal can elect to contribute to further exploration at 49% interest or reduce to a 30% interest free-carried to a decision to mine.
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