Mega Uranium Ltd. & Cameco Australia Pty Ltd Enter Formal Binding Farm in & Joint Venture Agreement for Kintyre Rocks Project...
Mega Uranium Ltd. and Cameco Australia Pty Ltd Enter Formal Binding Farm in and Joint Venture Agreement for Kintyre Rocks Project, Western Australia
TORONTO, ONTARIO--(Marketwired - Jan 30, 2014) - On July 11, 2013 Mega Uranium Ltd. (TSX:MGA) ("Mega" or the "Company") announced that it had entered into a non-binding farm in and joint venture terms sheet ("Terms Sheet") with Cameco Australia Pty Ltd ("Cameco"), a wholly owned subsidiary of Cameco Corporation (TSX:CCO) (NYSE:CCJ), in respect of certain granted tenements and tenement applications that comprise Mega's Kintyre Rocks project, located in the East Pilbara region of Western Australia ("Project"). The Project, owned by Boxcut Mining Pty Ltd ("Boxcut"), a wholly owned subsidiary of Mega, immediately surrounds the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi Development Pty Ltd ("Mitsubishi").
Mega is pleased to announce that it has now completed negotiations of, and entered into, a formal binding farm in and joint venture agreement for the Project with Cameco, in place of the Terms Sheet ("Definitive Agreement").
Pursuant to the Definitive Agreement:
Cameco may earn an initial 51% interest in the Project by sole funding expenditure for exploration activities of AUD$2 million within 24 months from the date of the Definitive Agreement (the "Stage 1 Farm In").
Upon Cameco earning a 51% interest in the Project, Boxcut and Cameco will form a joint venture for the purpose of maintaining and exploring, and, if justified, the development and mining of, the Project.
Cameco will be the operator of the Project during the Stage 1 Farm In period and the manager of the joint venture after the joint venture formation date.
Cameco may elect to earn an additional 19% interest in the Project (for an aggregate total interest of 70%) by sole funding expenditure for exploration activities of AUD$4 million (inclusive of the AUD$2 million expenditure to earn a 51% interest in the Project) within four (4) years from the date of the Definitive Agreement.
The Definitive Agreement otherwise contains terms, representations and warranties that are customary for an agreement of its kind. The Definitive Agreement represents a great opportunity for Mega to advance the exploration and development of the Project with a world class joint venture partner that has significant uranium exploration and other expertise in the area.
Mega looks forward to working with Cameco to advance the Project.
Kintyre Rocks Project, Western Australia
The Project comprises granted exploration licences E45/2690 and E45/2691, and applications for prospecting licences P45/2657, P45/2658 and P45/2659. These tenements surround the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi. Within Mega's ground are geological settings analogous to that of the Kintyre deposit.
To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/924833m.pdf
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Canada and Cameroon. Further information on Mega can be found on the company's website at www.megauranium.com.