Toro finalises tenements deal

THE BOURSE WHISPERER: In February uranium trend-setter Toro Energy announced it was acquiring a project called Millipede from MPI Nickel, a subsidiary of Norilsk Nickel Australia.

The company has now announced that it has executed a raft of comprehensive legal documentation with MPI which has set out the commercial and legal framework for the purchase of certain mining tenements adjacent to the Centipede deposit at Toro’s Wiluna uranium project in Western Australia.

The Millipede project consists of three additional tenements that are situated immediately adjacent to Centipede.

Centipede is one of Toro Energy’s key uranium deposits, on which the company is currently undertaking development approval at Wiluna.

Toro has purchased the mining tenements and associated database for Millipede from MPI.

In turn, MPI has retained the rights to all non-uranium minerals, other than those produced as a by-product of uranium mining of co-mingled ores.
 
One of the tenements is currently the subject of a Joint Venture operating between MPI and Barrack Mines, which is a wholly owned subsidiary of Grange Resources.

Barrack’s holding in the Joint Venture is 10 per cent equity.

Toro has concluded the acquisition of this 10% interest in M53/336 on the same terms on a pro-rata basis.

Toro Energy is currently working on a JORC Resource update for the Wiluna project.

The company said that it expects Millipede will now constitute a portion of the revised consolidated resource.

The revised Resource is scheduled to be released at the end of September.