Toro Energy (ASX: TOE) has updated the market on the Mt Woods uranium project.
Toro said that shareholders have voted to accept the terms of a termination agreement for the company's involvement in the Mount Woods uranium project in South Australia.
At yesterdays general meeting, shareholders supported the proposal that Toro be paid $3.75 million by OZ Minerals (ASX: OZL) as consideration for the termination of an agreement between the two companies as previously applied to the project.
Both companies signed a Letter of Intent in November last year for the termination of the Tenements Access Agreement between them over Mount Woods - a project comprising tenements EL4025, EL4132, EL4283 and EL4390.
Toro required shareholder approval for the transaction as it was disposing of a substantial asset to a substantial shareholder, OZ Minerals, which holds 42.06% of Toro's issued share capital.
The Tenement Access Agreement granted Toro the right to explore for and, under certain conditions, mine economic uranium discoveries. It also entitled Toro access to all Mt Woods exploration data and information collected by OZ Minerals on the tenements.
OZ Minerals has conducted major exploration programs at Mt Woods and, despite extensive drilling campaigns, no potentially economic uranium results have been reported from the project.
Toro announced at the time that a review by it of the project's exploration data, provided no indication or encouragement.