THE BOURSE WHISPERER: Marmota Energy (ASX: MEU) has increased its interest to 100 per cent in the uranium rights to the company’s Junction Dam uranium project located west of Broken Hill in South Australia.
The project is situated within a sandstone-hosted uranium province, which hosts the Honeymoon and Beverley uranium mines.
Junction Dam location map. Source: Company announcement
The advancement to 100 per cent ownership became effective once Marmota achieved the fifth and final earn-in for Junction Dam.
This took its interest in the uranium rights of EL 4509 to 90.45 per cent.
Under the terms of the original farm-in agreement, once Teck Australia, Platsearch (ASX: PTS) and Eaglehawk Geological Consulting hold less than a total 10 per cent interest, their interest converts to a 5 per cent net profits royalty with Marmota’s interest increasing to the 100 per cent entitlement.
The achievement marks a successful three year strategy, during which Marmota initially moved to a 51 per cent uranium rights earn-in in 2010, then a 74.5 per cent interest through exploration and drilling completed in 2010 and to 87.3 per cent in 2011 through further expenditure.
“Junction Dam remains the company’s flagship asset and this milestone now delivers greater certainty and control in our current and ongoing steps to assess and implement the optimal pathway to the project’s commercialisation through in-situ leaching,” Marmota Energy managing director Dom Calandro said in the company’s announcement to the Australian Securities Exchange.
“While the uranium market has been challenging in recent times, we are buoyed by the sustained long-term outlook for uranium which remains strong and is showing signs of recovery.
“Our strategy is to position Junction Dam’s development and potential first production to enter this market at the time annual global uranium consumption is expected to exceed annual global mine production by a significant margin over the next decade.”