Laramide Completes Acquisition of Murphy Project in Northern Territory from Rio Tinto Exploration Listed
Laramide Completes Acquisition of Murphy Project in Northern Territory
from Rio Tinto Exploration
Listed (TSX:LAM; ASX:LAM)
TORONTO
,
Nov. 6, 2018
/CNW/ - Further to its announcement on
16 July 2018
, Laramide Resources Ltd. ("
Laramide
" or the "Company") (
TSX:LAM
;
ASX:LAM
) is pleased to announce it has now completed the conditions precedent for the acquisition of the Murphy Project from Rio Tinto Exploration Pty
Limited ("RTX"). The Company now holds a 100% interest in the Murphy Uranium Tenements in the Northern Territory of
Australia
(the "Project"), which it
had previously been exploring under a farm-in agreement with RTX.
Figure 1 – Murphy Project (red outline) (CNW Group/Laramide Resources Ltd.)
The strategically located Project consists of 683.5 km
2
of granted exploration tenure, which lies contiguous to and along strike from Laramide's
Westmoreland Project in northwest
Queensland
. The Project will enhance Laramide's dominant landholding in a highly prospective and underexplored
uranium province.
The Northern Territory of
Australia
is a jurisdiction that is supportive of both uranium development and mining and hosts several well-known deposits
including the Ranger Mine which has produced in excess of 120,000 tonnes of U
3
O
8
over a 35-year period. The new Agreement is structured to incentivize
a return to active exploration on the Project while providing RTX with an opportunity to participate should a world class discovery be made.
Terms of the Sale Purchase Agreement:
As consideration for the sale by RTX of its interest in the Project to Laramide, the Company has made a AUD$150,000 cash payment to RTX and paid all
necessary stamp duty associated with the transfer.
Under the SPA the Company is also required to make the following payments:
A further payment of AUD$150,000 on or before the date which is 12 months from the closing date; and
a further payment of AUD$150,000 on or before the date which is 24 months from the closing date.
Laramide can elect to make these payments in cash or common shares at the Company's discretion. Should the common share option be selected, the
common shares (or CDI's) will be issued to RTX at a price which is at a discount of 10% to the value of the weighted average price of the common shares
on the TSX over the 10 days prior to the date of issue.
The Agreement allows for RTX to have Clawback Rights, a Production Payment, an NSR Royalty and Rights of First Refusal under certain conditions.
The Clawback Rights can be exercised, on a one-time basis, if Laramide discovers and defines a Measured and Indicated Mineral Resource Estimate on
the Project with an In Situ Value estimated in excess of
US$1 billion
(US$1,000,000,000)
. This would allow RTX to Clawback a 51% interest in the newly
formed (the "Joint Venture
"
) on payment to Laramide of two times their expenditures to that date.
Unless and until RTX has exercised, or waived, its Clawback Right, Laramide would also be obligated to make a one off payment equal to 1% of the Pre-
Production Expenditures (the "Production Payment
"
) on the Project from first revenues and also reserves for the benefit of RTX a net smelter return royalty
of two per cent (2%) in respect of all product produced from any mining within the Project Area.
RTX will also retain a right of first refusal over future divestiture of the Project under certain conditions.
The Project comprises exploration licences, EL 9319 (411 km
2
) and EL 9414 (272 km
2
), together with several associated exploration licence applications,
which are situated geologically within the highly prospective Murphy Uranium Province. The Murphy Uranium Province produced high-grade uranium during
the 1950s and stands out amongst the world's attractive underexplored uranium provinces, having not seen any meaningful exploration since the 1970s
(see press releases
May 16, 2011
;
October 6, 2014
;
May 24, 2016
, and
July 16, 2018
).
Completion of Airborne Gravity Gradiometry Survey
The Company has recently completed the acquisition of high resolution Falcon Airborne Gravity Gradiometry ("Falcon AGG") over the contiguous
Queensland
and Northern Territory tenure highlighted in Figure 2. The Company is awaiting final data transfer from CGG Multiphysics.
Figure 2 – Now 100% Laramide tenements covered by Falcon AGG (red outline). (CNW Group/Laramide Resources Ltd.)
The
Westmoreland
exploration model involves targeting mineralisation associated with chlorite and haematite alteration confined by large fault systems and
in association with intrusive dykes.
Structural information is key in target development. The Falcon AGG survey will provide structural information by highlighting basement architecture and
faulting including those which may penetrate the sedimentary package and hence be conduits for mineralising fluids.
The Survey may also enable the mapping of alteration associated basement features and structure and mapping of the location and extent of volcanic units
and intrusives.
The Northern Territory government has awarded Laramide a AUD
$100,000
co-funding grant towards the completion of the Survey under the Geophysics
and Drilling Collaborations program.
To learn more about Laramide, please visit the Company's website at
www.laramide.com
.
About Laramide Resources:
Laramide is a Canadian-based company with diversified uranium assets strategically positioned in
the United States
and
Australia
that have been chosen
for their low-cost production potential. Laramide's recently acquired
Church Rock
and
Crownpoint
properties form a leading In-Situ Recovery (ISR) division
that benefits from significant mineral resources and near-term development potential. Additional U.S. assets include La Jara Mesa in
Grants, New Mexico
,
and
La Sal
in the Lisbon Valley district of
Utah
. The Company's Australian advanced stage
Westmoreland
is one of the largest uranium projects currently
held by a junior mining company. Laramide is listed on the TSX: LAM and ASX: LAM.
Forward-looking Statements and Cautionary Language
This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results
to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal
liability to the contrary.
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SOURCE
Laramide Resources Ltd.
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For further information:
Marc Henderson, President and Chief Executive Officer, Toronto, Canada +1 (416) 599 7363; Bryn Jones, Chief Operating
Officer, Brisbane, Australia, P: (07) 3831 3407; Greg Ferron, Vice-President, Investor Relations, Toronto, Canada +1 (416) 599 7363
CO: Laramide Resources Ltd.
CNW 07:30e 06-NOV-18