Paladin Energy has bought Energia Minerals Limited’s Carley Bore uranium deposit in Western Australia for $16 million.
Paladin will issue EMX 40 million Paladin fully paid shares and make a cash payment of $1.6 million for the purchase of a 685km2 land package covering a rich sedimentary basin which hosts the Carley Bore deposit.
Made up of three exploration licenses, Carley Bore is located just 100km south of Paladin’s Manyingee Uranium Project, making it a strategic acquisition for Paladin which is expected to deliver operational synergies.
The buy will increase Paladin’s JORC (2012) Indicated Mineral Resources within the area by more than 30 per cent to 20.7Mlb U3O8 at a grade of 680ppm, and the Inferred Mineral Resources by more than 100 per cent to 20.9Mlb at a grade of 415ppm.
Paladin believes Carley Bore has the potential to become a complementary “satellite” operation with Manyingee as the main processing hub.
It said the deal has the potential to develop a significant mining operation with a long mine life extending well beyond 20 years.
However, Paladin maintained its stated position that it will not develop any new projects before it is confident of a sustainable uranium price of at least US$70/lb.
Paladin’s Managing Director/CEO John Borshoff said the acquisition of Carley Bore was a “game changer” for the company.
“With this land package, we have cornered a significant portion of the emerging Carnarvon Basin uranium province. This acquisition has the clear potential to improve the economics of a key development project by delivering valuable synergies in regional infrastructure,” Borshoff said.