Oar Resources (ASX:OAR) has signed a binding agreement to obtain a 100% interest in prospecting licences (EPL) in the Erongo region of Namibia, Africa, from Bullrun Capital, Cityscape Asset, and Impala Consulting.
Both EPLs (9725 and 9652) are still in an application phase, but are anticipated to be granted in the near term.
CEO Paul Stephens says as part of the company exploration strategy, it has decided to diversify its portfolio and securing these tenements mark an opportunity to develop uranium-focused exploration in a tier one destination.
“The acquisition in Namibia is significant, with both EPLs located close to a well-known uranium-enriched structural corridor and considered prospective for multiple styles of uranium mineralisation.”
Under the agreement, Oar will pay the vendors C$125,000 cash and once granted, Oar will issue 100 million fully paid ordinary shares to the vendors.
After 12 months, Oar will issue another 100 million shares to the vendors, and within 4 years will issue another 100 million shares.
The vendors will be granted a 2% net smelter royalty in respect of all minerals extracted by Oar from the ePLs.
Once granted, the tenements will undergo an environmental study to secure an Environmental Clearance Certificate.
Upon completion, Oar will aim to lodge an Environmental Impact Assessment with the Namibian Ministry of Mines and Energy, which will enable the company to conduct fieldwork on both licences in the lead-up to generating its maiden permitted drill program.
Oar intends to build an in-country team with expertise in Namibian uranium mineralisation and begin collating and reviewing current state geological data and historical data from previous explorers, with preliminary research already underway.
As part of a maiden exploration program, Oar plans to also conduct surface scintillometer surveys and radiometric geophysical surveys, which will help to identify priority areas for aircore and reverse circulation drill programs.
The company notes completion of the acquisition is subject to a number of conditions precedent, including completing due diligence, being granted the licences, and securing shareholder approval.
Oar Resources is an explorer and developer focused on building a portfolio of battery and critical mineral projects to meet global demand for the minerals used in the rising development of electric vehicles and the transition to green energy.
Write to Aaliyah Rogan at Mining.com.au
Images: Oar Resources
