Uranium mining hopeful Toro Energy has signed a farm-in joint venture deal with nuclear powerhouse AREVA Resources.
The agreement covers the Wiso exploration package in the Northern Territory, a 2,292 km stretch of land south west of Tennant Creek.
Toro said Wiso Basin is ideally placed to explore for sandstone hosted uranium systems, similar to those found in Kazakhstan where six of the world’s top 15 producing uranium mines are operating.
“We are excited to have AREVA participate in our substantial exploration portfolio at a time when few companies are actively exploring in Australia for uranium,” Toro’s Managing Director, Dr Vanessa Guthrie said.
“We look forward to adding value to our NT exploration targets through a long and beneficial relationship with one of the world’s most respected uranium groups.”
As part of the agreement, AREVA will have to spend $500,000 within two years to earn a 51 per cent interest in the project.
It will then have the option to spend a further $1.5 million over four years to gain an 80 per cent interest.
Drilling is expected to start in the first half of 2015.
Toro is vying to develop Western Australia’s first uranium mine.
Having gained all the necessary approvals, Toro is awaiting to sign off on financing deals for the Wiluna mine.