Laramide Resources Ltd is pleased to announce that it has entered into an agreement with Homestake Mining Company of California and La Jara Mesa Mining Company (collectively “Homestake”), both being wholly-owned subsidiaries of Barrick Gold Corporation, to acquire Homestake’s uranium portfolio in the western United States.
Homestake was a significant US uranium producer from the 1950’s to the late 1980’s. The properties to be acquired (the La Jara Mesa, Los Ochos, Melrich and La Sal properties) have been kept in good standing by Homestake throughout the long bear market for uranium which has now ended. The properties are located in the Colorado Plateau in Colorado and Utah and in the Grants District of New Mexico. The La Jara Mesa property located in Cibola County, New Mexico is the most significant property in the portfolio.
La Jara Mesa is a sandstone hosted roll front type deposit that has been extensively explored by Homestake and others including Pathfinder and Power Resources. Since the early 1980’s approximately 500 rotary holes and 18 diamond drill holes were drilled on the property; preliminary metallurgical test work and initial mine planning has also been completed. There is a historical resource on the property but it was developed prior to the implementation of NI Policy 43-101 and cannot be utilized by Laramide. Upon completion of the acquisition, Laramide intends to immediately commission an independent engineering report in NI 43-101 format. This report will validate and update the existing resource as well as provide recommendations for further exploration and development work.
Terms of the transaction require Laramide to pay Homestake a total of US $3,750,000 in cash, US $1,000,000 of which is due at closing with the balance represented by milestone payments tied to the permitting of the projects and commencement of commercial production. In addition Laramide has committed to expend US $1,500,000 over the next two years on the properties and to pay a royalty of US $0.25 per pound U3O8 on any production in excess of eight million pounds from the La Jara properties. Laramide has advanced US $50,000 of the purchase price; closing is expected to occur on the earlier of 60 days from October 7 or the completion of Laramide’s due diligence process.
This press release contains forward looking statements.
For further information contact:
Marc C. Henderson, President
Tel: (416) 599-7363
Or visit our web site at www.Laramide.com
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