Laramide Resources to pursue large greenfield exploration opportunity in Kazakhstan: Acquires option on 6,000 km² land position in prolific Chu-Sarysu Basin
Highlights:
- 22 subsoil use license applications for approximately 6,000 km2 comprising the
Chu-Sarysu Project (as defined below) located in theSuzak District of the South Kazakhstan Oblast,Republic of Kazakhstan . - Proximal to some of Kazatomprom largest uranium deposits and operational mines such as Inkai, Budenovskoye and Muyunkum-Tortkuduk.
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The Chu-Sarysu Project area includes a number of mapped, paleo-channel roll-fronts, associated with uranium deposits and amenable to ISR mining. - Laramide to operate and fund exploration program towards discovery of a viable uranium resource.
Under the terms of the Option Agreement, Laramide has the right (the "Option") to acquire all outstanding shares of Aral at any time during the option period, thereby obtaining full ownership of the
The mineral licenses included in the option agreement cover nearly 6,000 square kilometres and represent a unique greenfield exploration opportunity. Each license has an initial term of up to six years, with the option for a one-time renewal for an additional five years.
The Option Agreement remains subject to the approval of the
"The opportunity to explore in one of the world's most prolific and prospective uranium basins appears to us to be a very compelling and overlooked opportunity," says
"In spite of its proximity to world class ore bodies like Inkai and Budenovskoye, the large area represented in this Option has had very limited exploration in the post-Soviet era, and with
Option Agreement Highlights:
- Following the definitive grant to Aral of all license applications related to the
Chu-Sarysu Project and approval from the TSX, Laramide will make a one-time payment ofUS$450,000 in cash and shares to the Optionors and annual payments ofUS$150,000 payable in cash on each anniversary of the Option Agreement, commencing on the first anniversary. - The Option is exercisable for a term of three years and may be extended for an additional one-year term with a one-time payment of
US$400,000 in cash and shares. - The Option can be exercised by Laramide at any time during the term of the agreement through a one-time payment of
US$14,000,000 in cash and shares. - The Option Agreement also contemplates and allows for an alternative mechanism to develop this opportunity by way of a spin-off transaction.
With the exception of the annual payments, all payments outlined above are payable as follows: (i) 50% in
During the term of the Option Agreement, Laramide will be the operator of the Property and will exercise exclusive supervision, direction and control over any and all operations, programs and budgets relating to the Property. Laramide will provide funding to Aral for the purposes of satisfying and fulfilling minimum economic commitments and expenditures in relation to each license comprising the Property, as required under
In connection with the Option Agreement, and in order to ensure Aral's compliance with the bonding requirements of
The Optionors will retain a 1% net smelter royalty which is subject to a buy down provision where Laramide may, at is discretion, repurchase 25% at a price to be agreed among the parties or by an independent third-party appraiser. In addition, Laramide holds a right of first offer regarding the sale, transfer or assignment of any portion of the net smelter royalty.
About the Chu-Sarysu Project
In 2023 Kazakhstan accounted for over 43% of global U3O8 production. Of the five main producing basins in the country the Chu-Sarysu and Syr Darya basins in the south of the country, account for over 75% of national production. These basins host major deposits and operational in-situ recovery ("ISR") mines such as Inkai, Budenovskoye and Tortkuduk/Muyunkum, which are Joint Ventures between Kazatomprom and Cameco, Uranium One and Orano respectively.
In an effort to promote foreign investment, in 2018 Kazakhstan revamped its
Exploration Program
Following TSX approval, over the coming weeks initial work will focus on historical technical data review including translation and target generation. Immediate focus will be to utilise airborne and ground geophysics to validate known, mapped, roll fronts to generate near-term drilling targets and potentially identify new high priority areas which remain underexplored within the basin.
Qualified/Competent Person
The information in this announcement relating to Exploration Results is based on information compiled or reviewed by
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Laramide is focused on exploring and developing high-quality uranium assets in Tier-1 uranium Jurisdictions of
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Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions. Actual results or developments may differ materially from those in forward-looking statements. Laramide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, exploration and production for uranium; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of resource estimates; health, safety and environmental risks; worldwide demand for uranium; uranium price and other commodity price and exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
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