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- Okapi Resources (OKR) bolsters the size of its US uranium asset resource through the purchase of the Hansen Lithium Project in Colorado in a deal worth a potential $11 million
- Okapi has agreed to the terms of an eight-year option with STB Minerals to buy 51 per cent of the Hansen project, which neighbours Okapi’s Tallahassee uranium project
- The new project increases the project’s mineral resource by 81 per cent to 49.8 million pounds of triuranium octoxide and boosts the grade by 10 per cent to 540 parts per million triuranium octoxide
- The company says it now plans to begin metallurgical test work and initial conceptual mine design work for the project
- Shares in Okapi Resources are soaring 20 per cent higher to 36 cents each at 12:44 pm AEDT
Okapi Resources (OKR) has bolstered the size of its US uranium asset resource through the purchase of the Hansen lithium project in Colorado in a deal worth a potential $11 million.
Under the deal, Okapi has agreed to the terms of an eight-year option with STB Minerals to buy a 51 per cent interest in the Hansen and Picnic Tree uranium deposits, which make up the wider Hansen project.
The new project neighbours Okapi’s existing assets at its Tallahassee uranium project in the state, increasing the project’s mineral resource by 81 per cent to 49.8 million pounds of triuranium octoxide and boosting the grade by 10 per cent to 540 parts per million triuranium octoxide.
Okapi Managing Director Andrew Ferrier said this was a “very important” transaction for the company and its shareholders.
“By securing this strategic 51 per cent interest in the Hansen Uranium Project, we now have sufficient resource inventory to advance the Tallahassee Uranium Project as a stand-alone asset,” Mr Ferrier said.
“Recent geopolitical events have put increased focus on the importance of the US revitalising its domestically sourced uranium, which will undoubtedly place a significant premium on US uranium assets such as Hansen.”
Under the deal with STB, Okapi will pay US$50,000 (A$67,000) upfront to execute the term sheet, with another US$450,000 to follow within 60 days for Okapi to enter the eight-year option agreement.
Okapi can maintain the option for five years by paying US$250,000 per year, with this price tag bumped up to US$500,000 per year for the remaining three years thereafter.
However, at any point during the option arrangement, Okapi can pay US$5 million to STB upfront to immediately receive its 51 per cent interest in the Hansen project. After this point, Okapi will no longer have to pay any further option fees.
This means the total amount payable over the full duration of the arrangement will be US$8.25 million (A$11 million), though there’s no guarantee Okapi will maintain the option arrangement for its full duration before deciding to clinch the 51 per cent interest outright.
Importantly, Okapi will have the right to take on exploration, development, and mining work in the Hansen project area during the option period.
The company said it now plans to begin metallurgical test work and initial conceptual mine design work for the project.
Shares in Okapi Resources were soaring 20 per cent higher to 36 cents each at 1:54 pm AEST. The company has a $35.12 million market cap.
