Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Toro Energy Gains Uranium Rights In WA's Lake Mackay

Toro Energy (ASX: TOE) has gained the uranium rights for exploration tenement E80/4747, which incorporates the Pokali Copper Prospect, in the Lake Mackay region of Western Australia.

Until recently this prospect was an advanced exploration project owned by Ashburton Minerals (ASX: ATN) and includes broad intersections of low-grade iron oxide copper gold (IOCG)-style mineralisation, such as 246 metres at 0.22% copper including 12 metres at 1.1% copper.

The former licence area became available recently due to the unanticipated expiry of its six-year term.

While Toro is pleased to obtain the uranium rights to the tenement, the company does not consider the copper project a core asset and as such has undertaken negotiations with former owner Ashburton Minerals to farm out the non-uranium rights for the tenement.

In return, Toro will secure exploration access to an adjoining Ashburton tenement, E80/3920, which has significant uranium potential.

Toro and Ashburton have entered into a formal Heads of Agreement under which Toro retains 100% uranium rights to E80/4747 and obtains 100% uranium rights to Ashburton's E80/3920.

Toro will retain a free carried 10% equity in E80/4747 for two years following grant of access, and is to be provided with Ashburton's regional database.

Also, Toro believes there is potential for a broader-commodity exploration program over its Lake Mackay tenements, as a result of new discoveries in the greenfields Fraser Ranges to the south.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.