Alligator Energy signs earn in and JV agreement

THE BOURSE WHISPERER: Queensland-based uranium hopeful Alligator Energy has signed an exploration agreement with Cameco Australia to earn up to 90% of an exploration licence in the Alligator Rivers uranium province, in the Northern Territory.

Alligator has signed the agreement through its wholly owned subsidiary Northern Prospector.

Cameco is a wholly owned subsidiary of Cameco Corporation of Canada which is the world’s largest publically traded uranium company.

Previous exploration carried out by Cameco on the licence area has reported uranium mineralisation in rock chip samples.

This work included surface rock sampling, which identified a drill target associated with a major regional fault.

Initial sampling returned values of greater than 1000 parts-per-million uranium in eight rock chip samples with a maximum of 9388ppm uranium within this target area.

Alligator said in its ASX announcement the tenement is consistent with its strategy to explore for high value deposits in the Alligator Rivers uranium province.

“EL 24992 is contiguous with ELAs 27251, 28315, 28176 and 28293, which are all held by Alligator, and consolidates the company’s uranium exploration package in this world recognized uranium province,” the company said.

Under the terms of the agreement:
 
– Alligator has committed to spend $500,000 on exploration including the completion of 3 drill holes for an aggregate of 600m prior to 31 December, 2012.

– Upon electing to and subsequently spending a further $2 million within 3 years Alligator will earn a 40% interest in EL 24992. Following which Cameco may elect to fund their 60% interest or,

– Upon Alligator sole funding a cumulative $10 million within 6 years, AGE will be entitled to a further 50% of the tenement ( for a total interest of 90% ) OR Cameco may elect to refund 3 times total expenditure to claw back to 60%.