Junior explorer Majescor Resources (CVE:MJX) said Thursday that it has now formed a joint venture with Strateco Resources (TSE:RSC) for the Mistassini uranium property, located in the Otish Mountains district of northern Quebec.
In February, Strateco fulfilled its obligations of the two companies' option agreement, having incurred more than $1.3 million in exploration expenses over a three period on the property.
As a result, Strateco acquired a 60% interest in the uranium rights of the Mistassini project, and in mid-May, it executed a formal joint venture with Majescor, having an effective date of February 14, the companies said.
Under the terms of the joint venture deal, Strateco will be the operator of the partnership and will lead the exploration of uranium on the property, with full and exclusive access, as long as it retains a 50% interest.
Northern Superior Resources, which holds 100% of the diamond rights and 50.5% of all other mineral rights on the property, excluding diamonds and uranium, said it will not conduct exploration work on Mistassini during the duration of the joint venture. In exchange for this, Northern is entitled to a 2% yellow cake royalty on the project.
The Mistassini property is comprised of 171 map-designated claims for a total area of 9,115 hectares. The property is host to the Lac Mantouchiche uranium showing, where in November 2007, Majescor drilled an 18.5-metre intersection, grading 0.215% uranium oxide at a vertical depth of 47 metres in hole MIST-07-03.
In addition to the Mistassini uranium property, Majescor's project portfolio includes the Somine copper-gold property in Haiti and the Besakoa gold and base metal property in Madagascar.