Canadian firm snaps up further uranium sites
By Industry Queensland
Consolidated Uranium is continuing its push into Queensland with a deal to buy the West Newcastle Range, Teddy Mountain and Ardmore East uranium projects.
The acquisition significantly expands the Canadian company’s footprint in Queensland, with all three located in proximity to its existing assets, including the Ben Lomond, Georgetown, Milo and Gidyea Creek projects.
“Expanding our project portfolio in Australia has been a key goal for the company, with this latest acquisition establishing a critical mass of seven projects in Queensland, in two important uranium districts, all in close proximity to one another,” chief executive officer Philip Williams said.
“Not only do these projects have compelling historic uranium drill results, they boast exploration potential and show evidence of vanadium and rare earth mineralisation, which is becoming increasingly strategic in Australia, as well as globally, and could play an important role in our future development plans in the state.
“While our near-term focus remains on advancing our past producing uranium mines in the US toward a potential production decision, our longer-term goal is to build out our development pipeline through either additional M&A or by advancing existing projects within our portfolio.
“To this end, our team in Australia is developing a comprehensive exploration plan for these projects which we will update the market on in due course.”
Consolidated Uranium has entered into a definitive share sale and purchase agreement to acquire West Newcastle Range, Teddy Mountain and Ardmore East from privately owned Australian exploration company GlobalOreInvestments.
It will pay $200,000 in cash upon granting of the West Newcastle Range, Teddy Mountain and Ardmore East exploration licences as well as 598,843 shares.
In addition, the company has agreed to make two separate contingent payments of $500,000, payable in cash or shares, linked to price and resource milestones.
Historic drilling results from the sites include 10m at 0.63 per cent U3O8 from 12m at Teddy Mountain, about 230km west of Townsville, and 10m grading 0.59 per cent U3O8 from 42m at West Newcastle Range, about 5km north-east of Georgetown.
Ardmore East, about 70km south of Mount Isa, covers exploration stage prospects with uranium and vanadium mineralisation, and anomalous REE signature.
In June Consolidated Uranium exercised its option to acquire the Ben Lomond and Georgetown uranium projects in North Queensland for more than $3 million.
It came just months after the company sealed a deal with GBM Resources to acquire the Milo uranium, copper, gold and rare earth project 40km west of Cloncurry.
Consolidated Uranium also announced in April that it had been granted three tenements about 65km north of Mount Isa – known as the Gidyea Creek project and sitting immediately adjacent to Paladin Energy’s Valhalla project.
