Australian resources company Oklo Uranium (ASX: OKU) has acquired rights to a 70% interest in the highly prospective Hoasib Uranium Project, located near the operating Langer Heinrich Uranium Mine in Eastern Namibia, in a cash/share transaction valued at approximately A$20 million.
Under the terms of the agreement Oklo has agreed to acquire 70% of Green Mineral Resources Pty. Limited (NYSE:GMR) a company incorporated in Namibia and owner of exploration licences EPL 3664 A &B in Namibia.
The Langer Heinrich Uranium Mine is owned and operated by Paladin Resources Limited.
The vendor of the shares in GMR is Africa Uranium Limited (AUL), an unlisted public company in which ASX listed company Cape Lambert Resources (ASX: CFE) holds an interest.
The consideration for the acquisition is to be made up of approximately 309M Oklo shares (valued at ~ A$17M) and A$3M cash.
It is the intention of AUL, post completion of transaction to distribute Oklo consideration shares to its shareholders, thereby making CFE a major shareholder of Oklo.
As part of the transaction Oklo will undertake a capital raising for the outstanding cash portion of the transaction as well as sufficient funds to undertake an extensive exploration and drilling programme with the objective of identifying a major new uranium resource.
Completion of the transaction between Oklo and AUL is subject to satisfaction of certain terms and conditions including satisfactory due diligence and approval by Oklo’s shareholders.
It is intended that the required Oklo shareholders meeting and completion will occur within the next 60 days.
CFE will be entitled to a transaction fee of 25,000,000 unlisted options with an exercise price of A$0.055 and with a term of two years following Completion.
The Oklo shares to be issued will be escrowed for 6 months from issue.
CFE and Africa Uranium are to each appoint members to Oklo’s board.
The Hoasib Uranium Project is prospective for high tonnage low grade palaeo-channel hosted uranium mineralisation such as the prevalent mineralisation at the Trekkopjie deposit and Langer Heinrich Uranium Mine.
Langer Heinrich has a mineral resource of 74,415t U3O8 at a grade of 600ppm and Trekkopjie has a mineral resource of 360,000,000t at a grade of 100ppm.
Although the proximity of the Hoasib Project to the Langer Heinrich uranium mine does not in itself mean that the Hoasib Project will host economic levels of uranium, the proximal nature of both uranium mineral occurrences indicates that they possibly share the same regional mineralising processes critical in the formation and preservation of this form of uranium mineralisation.
Exploration conducted at the Hoasib Project to date confirms its Trekkopjie-Langer Heinrich potential.
In two lines of drilling spaced 1,000m apart across a large sedimentary feature, referred to as the Main Basin Deposit, broad zones of near-surface calcrete-hosted uranium mineralisation have been identified.
A mineralised zone up to 4,000m wide was intersected in shallow reverse circulation drill holes on both lines. The uranium mineralisation was generally below 200eppm, with the highest intersection at 308eppm over 0.1m.
The uranium mineralisation is related to a laterally extensive sequence of sheet-wash deposits associated with a palaeo-drainage system. The uranium has been sourced from proximal “hot granites” and precipitated as carnotite in the calcrete sequence. In this respect it is similar to Langer Heinrich.
The mineralisation was open in both directions of the palaeo-drainage trend and at depth. Another four uranium targets have been identified within the Hoasib Project. They all represent palaeo-channel Trekkopjie-Langer Heinrich type targets.
Oklo Uranium shares rose 48% to 8 cents in trading today.
Disclosure: The author holds no positions in the company