Orpheus Uranium (ASX:ORP) has added another project to its portfolio with the completion of the acquisition of the Frome Uranium Project in South Australia.
The company has executed a letter agreement with hydrogeological consultancy Groundwater Science to finalise the 100% acquisition of the project.
The Frome project features the Erudina prospect, which is the focus of the company’s planned maiden drilling program.
Orpheus, which has a $15.18 million market capitalisation, says total consideration of the transaction is $330,000 via the issue of over 3.666 million Orpheus shares at $0.09 per share.
“We are pleased to finalise the 100% acquisition of our flagship Frome Project, which forms a critical part of Orpheus’ project portfolio in South Australia,” Executive Chairman Mick Billing says.
Meanwhile, Orpheus advises it has agreed with Groundwater Science to return 100% ownership of the Cummins Project back to the latter. Cummins sits in the southern part of the Eyre Peninsula and is no longer a core focus for Orpheus.
Billing says completion of the Frome acquisition and concurrent relinquishment of Cummins is in line with the company’s focus on developing its uranium assets.
Today (9 April 2024), the company reports it is exiting from its exploration projects in Zambia. Prospect Resources (ASX:PSC) will pay Orpheus $1 million as partial reimbursement of prior exploration expenditure, along with three options to acquire ordinary PSC shares for every four shares issued at $0.15 per share, expiring three years after issue.
Upon definition of a JORC-reportable mineral resource exceeding 500,000 tonnes of contained copper metal, Prospect will also make a milestone payment of $2.5 million to Orpheus.
Orpheus Uranium is focused on exploration in South Australia and the Northern Territory. Both jurisdictions allow uranium mining and processing.
As of December 2023, the company had $5.3 million in cash at hand with no debt, according to its latest investor presentation.
Write to Adam Drought at Mining.com.au
Images: Orpheus Uranium
