Thursday saw MetalNRG (NEX:MNRG) reveal that its potential uranium project in Kyrgyzstan has been given the green light for mining. The State Reserve Committee of Kyrgyzstan has granted a mining licence covering 3,371.1ts of uranium reserves at the Kamushanovskoye deposit. This resource would have an in-situ value of c.$253.1m at current spot prices.
MetalNRG paid $50,000 last August to enter an option to acquire an interest in Kamushanovskoye and carry out due diligence at the site. The project is currently 94.7pc owned by International Mining Company (IMC), with MetalNRG now holding the remaining 5.3pc through its stake in IMC.
Under the terms of the option, IMC would transfer the project in a new holding company. MetalNRG would then inject a specified amount of project development funding in exchange for a 51pc stake in the new company and the project. Under an amendment to the option agreement made last month, the two firms agreed that MetalNRG would be granted an additional 2.5pc stake in the new company for every $50,000 payment made to IMC.
In today’s announcement, the business said it has now decided to pursue the joint venture. It said it has supported IMC financially with the application for a mining licence and now plans to pay a further $45,000 over coming weeks before ultimately injecting $813,500 to attain its 51pc position.
Kamushanovskoye is located 48km from Bishkek, the capital city of the Kyrgyz Republic, and within 550km of three uranium refineries. It includes a JORC-compliant measured and indicated resource totalling 3.604Mlb of U3O8, a compound of uranium, and an inferred resource of 1.939Mlb U3O8. It also offers a potential exploration upside of an additional 2.58Mlb of uranium from a partially explored zone
Rolf Gerritsen, chief executive at MetalNRG said the business is interested in the project because market dynamics are currently making it an ‘extremely interesting’ time for uranium.
‘Our project is moving towards production and we are all extremely pleased with the progress. The financials around the project make it an outstanding opportunity and we look forward to the ongoing working relationship with IMC who are doing a great job,’ he added.
Author: Daniel Flynn
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