Laramide Resources closes option agreement on exploration opportunity in Kazakhstan's prolific Chu-Sarysu Basin
Laramide Resources closes option agreement
on exploration opportunity in Kazakhstan's
prolific Chu-Sarysu Basin
Highlights:
Laramide has completed the agreement terms for the opportunity to explore 22 subsoil use
license applications covering approximately 5,500 km
2
comprising the Chu-Sarysu Project
located in the Suzak District of the South Kazakhstan Oblast, Republic of
Kazakhstan
.
The prospective land package covers an area which is proximal to some of Kazatomprom's
largest uranium deposits and operational mines, including Cameco's JV project, Inkai, and
Orano's JV project, Muyunkum-Tortkuduk.
The Chu-Sarysu Project area includes a number of mapped, paleo-channel roll-fronts,
associated with uranium deposits and amenable to ISR mining.
Laramide will operate and fund the exploration program towards the discovery of a viable
uranium resource.
TORONTO
,
Dec. 6, 2024
/CNW/ -
Laramide Resources Ltd.
(
"Laramide"
or the
"Company"
)
(TSX: LAM) (ASX: LAM) (OTCQX: LMRXF), a uranium mine development and exploration company
with globally significant assets in
the United States
and
Australia
, is pleased to announce the
successful closing of a three-year option agreement (the "
Option Agreement
"), with an option to
extend for an additional year, with Aral Resources Ltd. ("
Aral
"), a Kazakh company registered with
the Astana International Financial Center and the shareholders of Aral (the "
Optionors
"). Aral has
secured 22 mineral licenses covering nearly 5,500 square kilometres of the Chu-Sarysu sedimentary
basin of
Kazakhstan
(collectively, the "
Chu-Sarysu Project
").
Under the terms of the Option Agreement, Laramide has the right (the "
Option
") to acquire all
outstanding shares of Aral at any time during the option period, thereby obtaining full ownership of
the Chu-Sarysu Project. The Chu-Sarysu Project is located in the Suzak District of the South
Kazakhstan Oblast, Republic of
Kazakhstan
(Figure 1).
In 2022 Kazakhstan accounted for over
43%
1
of global U
3
O
8
production. Among the country's five
main uranium-producing basins, the Chu-Sarysu and Syr Darya basins located in the south of the
country, contribute more than 75% of national output. These basins host major deposits and
operational in-situ recovery ("
ISR
") mines including Inkai (Cameco JV) and Muyunkum-Tortkuduk
(Katco JV).
Additionally, the Chu-Sarysu Basin is notable for its significant copper potential, exemplified by the
Dzhezkazgan sediment-hosted copper deposit located in the northern region. This potential is further
reinforced by the ongoing exploration efforts across large tenement packages in the basin by major
companies such as Rio Tinto, Fortescue, and First Quantum.
Throughout the Option period, Laramide will serve as the exclusive operator, assuming responsibility
for all operational and exploration expenses. The mineral licenses included in the option agreement
cover nearly 5,500 square kilometres and represent a unique greenfield exploration opportunity
covering properties adjacent to some existing large operational uranium mines. Each license has an
initial term of up to six years, with the option for a one-time renewal for an additional five years.
Marc Henderson
, Laramide's President and CEO, comments:
"The uranium sector has faced years of underinvestment, and with nuclear energy now widely
recognized as one of the most effective solutions to meet global energy demands, nuclear
commitments are increasing. This has put further pressure on the existing supply-demand deficit.
As many existing mines are nearing depletion or failing to meet production targets, there are few
new projects to bridge the shortfall and an urgent focus on greenfield exploration is clearly
warranted.
"
Kazakhstan's
government actively supports the uranium sector, with favourable policies for
foreign investment and streamlined permitting processes. Furthermore, their high-grade, large-
scale deposits are amenable for the environmentally friendly and cost-efficient in-situ recovery
(ISR) mining method.
"While Laramide had not been actively seeking to expand its portfolio, the high-impact exploration
potential in
Kazakhstan
presented an exceptional low-risk, high-reward opportunity to strengthen
our pipeline of quality projects. As a company committed to building a uranium producer capable
of meeting utility needs, this aligns perfectly with our long-term strategy.
"The Chu-Sarysu Basin is an underexplored region and offers significant potential, comparable to
the merits of
Canada's
Athabasca
Basin. With strong government support for uranium mining and
foreign partnerships, this venture represents an exciting addition to Laramide's portfolio of existing
development assets. Exploration for ISR deposits in an infrastructure-rich region with many
existing producing operations has significant cost advantages and we are looking forward to
advancing this asymmetric opportunity in an aggressive manner."
__________________________
1
https://wna.origindigital.co/information-library/nuclear-fuel-cycle/mining-of-uranium/world-uranium-mining-production
Option Agreement Highlights:
Aral has received grant notifications for all license applications related to the Chu-Sarysu
Project and Laramide has received conditional approval from the TSX.
Laramide has made a one-time payment of
US$450,000
to the Optionors as follows: (i)
US$225,000
in cash; and (ii) 421,038 common shares in the capital of Laramide (the "Laramide
Shares") at a deemed price of
CDN$0.751
determined from the 20-day volume-weighted
average sale trading price of the Laramide Shares on the TSX as of
November 25, 2024
.
Annual payments of
US$150,000
will be payable in cash on each anniversary of the Option
Agreement, commencing on the first anniversary.
The Option is exercisable for a term of three years and may be extended for an additional one-
year term with a one-time payment of
US$400,000
, 50% in cash and 50% in Laramide Shares.
The Option can be exercised by Laramide at any time during the term of the agreement through
a one-time payment of
US$14,000,000
, 50% in cash and 50% in Laramide Shares.
The Option Agreement also contemplates and allows for an alternative mechanism to develop
this opportunity by way of a spin-off transaction.
2025 Plans for the Chu-Sarysu
Project
In late 2024, Laramide commenced the process of acquiring historical data from
Kazakhstan's
state
National Geological Services. Review of historical geological reports and data is ongoing and
includes the digitization of Soviet-era data. By early 2025, Laramide expects to secure the required
ecological permits and will then proceed with submitting exploration work plans to the Ministry of
Industry and Construction.
Laramide's initial exploration activities will focus on geological ground reconnaissance, in conjunction
with a broad airborne geophysical survey. This survey, scheduled to begin in Q2 2025, will be
designed to establish a modern, high-quality baseline dataset across the entire project and will
incorporate magnetic, electromagnetics and radiometric measurements.
Target generation from a combination of thorough historical data review and geophysical
interpretation will support the plan to drill test initial roll-front uranium targets during Q4 2025.
Figure 1: Map of Kazakhstan, showing project location in the Chu-Sarysu Basin (CNW
Group/Laramide Resources Ltd.)
Figure 2: Location of Licenses in relation to identified Roll Fronts (IAEA Technical Meeting, Vienna
2012: S. Ivanov, A. Shurilov, V. Kondrashov, A.Glushkov) (CNW Group/Laramide Resources Ltd.)
Details of the Option Agreement
With the exception of the annual payments, all payments outlined above are payable as follows: (i)
50% in
United States
dollars; and (ii) 50% in Laramide Shares, the value of which shall be
determined in accordance with the 20-day volume-weighted average sale price per share of the
Laramide Shares on the TSX as of the date prior to the relevant date of each of the payments as
described above.
During the term of the Option Agreement, Laramide will be the operator of the Property and will
exercise exclusive supervision, direction and control over any and all operations, programs and
budgets relating to the Property. Laramide will provide funding to Aral for the purposes of satisfying
and fulfilling minimum economic commitments and expenditures in relation to each license comprising
the Property, as required under
Kazakhstan's
mining regulations.
In connection with the Option Agreement, and in order to ensure Aral's compliance with the bonding
requirements of
Kazakhstan's
mining regulations for the licenses comprising the Property, Laramide
agreed to provide funding to Aral in an amount of up to
US$1,450,000
in the form of interest-free
loans pursuant to the terms and conditions of a grid promissory note and credit facility agreement
dated as of
June 24, 2024
(the "
Promissory Note
") issued by Aral for the benefit of Laramide.
Laramide loaned Aral an aggregate amount of
US$900,000
in connection with the Promissory Note
and Aral has successfully obtained appropriate bonding for all licenses comprising the Chu-Sarysu
Project. The funds loaned under the Promissory Note are repayable by Aral to Laramide in the event
Laramide does not exercise the Option, or the Option Agreement is terminated for any reason, or in
part if a license is terminated or withdrawn.
The Optionors will retain a 1% net smelter royalty which is subject to a buy down provision where
Laramide may, at its discretion, repurchase 25% at a price to be agreed among the parties or by an
independent third-party appraiser. In addition, Laramide holds a right of first offer regarding the sale,
transfer or assignment of any portion of the net smelter royalty.
Qualified/Competent Person
The information in this announcement relating to Exploration Results is based on information
compiled or reviewed by Mr.
Rhys Davies
, a contractor to the Company. Mr. Davies is a Member of
The Australasian Institute of Geoscientists and has sufficient experience which is relevant to the
style of mineralization and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves', and
is a "Qualified Person" as defined by National Instrument 43-101 –
Standards of Disclosure for
Mineral Projects
. Mr. Davies consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.
To learn more about Laramide, please visit the Company's website at
www.laramide.com.
Follow us on Twitter @LaramideRes
About Laramide Resources Ltd.
Laramide is focused on exploring and developing high-quality uranium assets in Tier-1 uranium
jurisdictions. The company's portfolio comprises predominantly advanced uranium projects in districts
with historical production or superior geological prospectivity. The assets have been carefully chosen
for their size and production potential, and the two large development projects are considered to be
late-stage, low-technical risk projects. As well, Laramide has expanded its pipeline with strategic
exploration in
Kazakhstan
where the company is exploring over 5,500 km
2
of the prolific Chu-Sarysu
Basin for world-class roll-front deposits which are amenable to in-situ recovery.
Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed to be "forward-looking statements".
All statements in this release, other than statements of historical facts, that address events or
developments that management of the Company expects, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential",
"possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the
negative of any of these terms and similar expressions. Actual results or developments may differ
materially from those in forward-looking statements. Laramide disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not limited to, exploration
and production for uranium; delays or changes in plans with respect to exploration or development
projects or capital expenditures; the uncertainty of resource estimates; health, safety and
environmental risks; worldwide demand for uranium; uranium price and other commodity price and
exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of
acquisitions; ability to access sufficient capital from internal and external sources; and changes in
legislation, including but not limited to tax laws, royalties and environmental regulations.
SOURCE
Laramide Resources Ltd.
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%SEDAR: 00003540E
For further information:
Marc Henderson, President and CEO, Toronto, Canada, +1 (416) 599
7363; Ann Baines, Director, Investor Relations, Toronto, Canada, +1 (647) 832-9904
CO: Laramide Resources Ltd.
CNW 09:22e 06-DEC-24