Dark Star Minerals (CSE:BATT) has executed a definitive agreement with Critical One (CSE:CRTL) to acquire whole interest in the Cobra North and Khan West uranium projects in Namibia.
The company will pay a total of US$760,000 ($1.17 million) to acquire 100% of Critical One’s prospecting licences near the Rossing Uranium Mine, comprising EPL 7011, EPL 8115, and EPL 8531.
Dark Star will additionally acquire 16% indirect interest in Critical One’s ML 86A mining license as well as the exclusive prospecting license EPL 8905 which makes up the Khan West Project.
So far the company has paid $10,000 on the execution of the letter of intent, also issuing 200,000 shares five days from this.
Shares will hold a value greater than $0.10 per share and the lowest permitted price available on the Canadian Securities Exchange (CSE).
The agreement offers Critical One a 2% gross overriding royalty, which Dark Star can buy-back 0.5% for US$1.5 million. The company will also induct Critical One CEO Duane Parnham to the board within four months from the agreement execution with CSE approval.
Parnham says Critical One is looking forward to accelerating the exploration and development of the projects through Dark Star’s holdings, which will act as the operator for exploration and development activities at the Cobra North Project during the option period.
“As a significant shareholder and director of Dark Star, I will continue to contribute to the development of these two exciting uranium projects,” Parnham says.
Critical One will also be able to engage in up to 30% of financing plans held by Dark Star for up to a year after closing or until more than US$10 million has been raised.
CEO Marc Branson says the completion of a definitive agreement to acquire these projects marks a “significant milestone” for the company as it progresses its strategic reach on Namibia’s uranium assets.
“The Cobra North and Khan West properties offer compelling exploration upside in a globally recognised uranium district, and we look forward to unlocking their value for our shareholders,” Branson says.
Dark Star Minerals is a rare earth explorer focused on advancing its portfolio of assets in Canada and Namibia.
Write to Maddison Elliott at Mining.com.au
Images: Dark Star Minerals
