Laramide Resources (ASX:LAM) has entered into an option agreement with Kazakh registered Aral Resources, to explore nearly 6,000km2 of tenure in Kazakhstan.
Under the three-year option agreement, Laramide has the right to acquire all shares in Aral at any time during the option period, thereby obtaining ownership of the Chu-Sarysu Project.
The Chu-Sarysu Project includes numerous mapped, paleo-channel roll fronts, associated with uranium deposits and amenable to in-situ recovery mining.
Laramide Resources, which has a market capitalisation of $184.23 million, will make a one-time payment of US$450,000 ($667,474) in cash and shares, following the definitive grant to Aral of all licence applications related to Chu-Sarysu and upon securing approval from the Toronto Stock Exchange.
The company also will have the option to extend the agreement for an additional year, with a one-time payment of US$400,000 in cash and shares.
At any time, Laramide Resources can exercise the option during the term of the agreement through a one-time payment of US$14 million in cash and shares.
CEO Marc Henderson says the opportunity to explore in one of the world’s most prolific and prospective uranium basins appears to be “a very compelling and overlooked opportunity”.
“Particularly, within the industry dynamic where the uranium supply deficit is now consensus thinking, and where nuclear power’s global growth ambitions will absolutely require greenfield discovery of new deposits,” he continues.
“In spite of its proximity to world-class ore bodies like Inkai and Budenovskoye, the large area represented in this option has had very limited exploration in the post-Soviet era, and with Kazakhstan now actively encouraging foreign investment, we have secured an early advantage and are looking forward to getting started.”
Laramide Resources will serve as the exclusive operator, assuming responsibility of all operational and exploration expenses of the project throughout the option period.
The optioners will retain a 1% net smelter royalty, subject to a buy down provision where Laramide may repurchase 25% at a price to be agreed upon by all of the parties and an independent third-party appraiser.
The Chu-Sarysu Project lies in the Suzak District of the South Kazakhstan Oblast, Republic of Kazakhstan.
In 2023, Kazakhstan accounted for more than 43% of the global triuranium octoxide production. Out of the five main basins in the country, the Chu-Sarysy and Syr Darya basins in the south of the country, account for more than 75% of the triuranium octoxide national production.
These basins host major deposits and operational in-situ recovery mines such as Inkai Budenovskoye and Tortkuduk/Muyunkum.
Aral Resources has secured 17 mineral licences, with an additional five licences pending approval of the Chu-Sarysu sedimentary basin.
Laramide Resources is focused on exploring and developing high-quality uranium assets in tier one uranium jurisdictions of Australia, US, and Kazakhstan.
Write to Aaliyah Rogan at Mining.com.au
Images: Laramide Resources
