NexGen Energy (ASX:NXG) has acquired full control of its uranium-rich landholdings in Canada’s Southwest Athabasca Basin, including Rio Tinto’s (ASX:RIO) 10% production carried interest across 39 mineral claims, most notably the high-grade Patterson Corridor East (PCE) discovery.
Under the terms of agreement, NexGen assumes 100% ownership of its flagship Arrow deposit and surrounding Rook I project area.
Upon starting production, NexGen was entitled to recover 10% of all prior costs incurred from the effective data of the original agreement. Following full recovery of those costs, Rio Tinto would have received its full 10% share of production.
NexGen says a joint venture would have been formed at that time to govern ongoing operations noting concurrent with its exercise, NexGen has agreed to match a cash payment offered to Rio Tinto for the interest.
CEO Leigh Curyer says this decision is in line with the company’s strategic objective of becoming a global uranium producer.
“Today, the uranium market is already in a structural deficit,” Curyer says.
“With the world’s leading tech companies recently committing to the construction of over US$100 billion in artificial intelligence data centres in the US alone – to be predominantly powered by nuclear energy – the ever-growing need for a safe, secure supply of uranium from sound jurisdictions is upon us.
“NexGen’s unmatched uranium endowment, including our flagship Arrow and developing PCE deposit, together with our large surrounding land package meets the criteria.”
The Arrow deposit lies within the Rook I Project which is a proposed new underground mine and mill development asset located in the Athabasca Basin, Canada.
NexGen Energy is a Canadian mining company focused on delivering clean energy fuel for the future.
Write to Aaliyah Rogan at Mining.com.au
Images: NexGen Energy
