Toro Energy (ASX:TOE) has entered into a farm-in and joint venture (JV) agreement with Japanese partners Japan Australia Uranium Resource Development (JAURD) and Itochu Corporation to earn 35% in the Lake Maitland Uranium Project in Western Australia.
As part of the agreement — disclosed in Toro’s JP Equity Partners, Investor Briefing ‘Going Nuclear’ — JAURD and Itouch will pay aggregate payments of $50 million to Toro.
Toro, which has a market capitalisation of $49.31 million, reports Lake Maitland will be re-estimated to better define the resource at the new cut-off grade before restraining the resource and re-calculating the total Wiluna Uranium Project resource at the new cut-off grades.
The company says the lower cut-off grades will allow for better comparison with its industry peers, who also state uranium resources at 100 parts per million triuranium octoxide (U3O8) cut-off.
As this news service previously reported, Toro has begun drill planning for its Wiluna project with the aim to deliver potential ore to its pilot plant.
Drill planning will also be designed to cover a representative sample of all potential ore types across Lake Maitland, Centipede-Millipede, and Lake Way.
Toro says there is an opportunity to process ‘high-grade’ well beyond the seventh year of production, with materials from all 3 deposits at a Lake Maitland uranium-vanadium processing operation.
Lake Maitland sits within the company’s Wiluna project in Western Australia’s northern goldfields.
Toro Energy is an Australian uranium developer and explorer focused on its assets that are also considered prospective for gold and base metals in Western Australia.
As of 31 January 2024, the company had $15.1 million cash at hand, according to its latest investor briefing.
Write to Aaliyah Rogan at Mining.com.au
Images: Toro Energy
