Toronto, Canada – Laramide Resources Ltd. (“Laramide” or the “Company”) (TSX:LAM) is pleased to announce the signing of a Binding Farm-In and Joint Venture Term Sheet with Rio Tinto Exploration Pty Limited (RTX) pursuant to which the Company can joint venture two strategically located uranium tenements in the Northern Territory of Australia (Project). The Project comprises tenement applications, EL 9319 (724 km2) and EL 9414 (387 km2) that are situated geologically within the highly prospective Murphy Uranium Province and are along strike from Laramide’s flagship Westmoreland Project in northwest Queensland. The Murphy Uranium Province produced high-grade uranium during the 1950s and stands out amongst the world’s attractive underexplored uranium provinces, having not seen any meaningful exploration since the 1970s.
Under the terms of the agreement, Laramide can earn 51 per cent in the Project with the expenditure of AUD$10 million over a 4-year period on exploration and development. The first AUD$1 million of this earn-in is a firm commitment by Laramide, and it will be dedicated to a large-scale helicopter supported airborne survey that will include magnetics and radiometrics. RTX is finalizing the Exploration Agreements with traditional landowners necessary for the program to commence, including approval for uranium exploration. Laramide intends to commence an exploration program on the Project during 2011.
“This agreement augments and enhances Laramide’s strategic landholding in a highly prospective and underexplored uranium province,” commented Marc Henderson, President and CEO. “We believe continuing exploration will result in further discoveries in the District and exploration costs and ultimately operating parameters should benefit significantly from the proximity to Westmoreland. An important aspect of the transaction is the location of the properties in Northern Territory: a jurisdiction that is supportive of both uranium development and mining.”
Laramide is engaged in the exploration and development of high-quality uranium assets. Its wholly owned uranium assets are in Australia and the United States. Laramide’s portfolio of advanced uranium projects have been chosen for their production potential. Its flagship project, Westmoreland, in Queensland, Australia, is one of the largest projects currently held by a junior mining company. Its U.S. assets include La Jara Mesa in Grants, New Mexico, and La Sal in the Lisbon Valley district of Utah. Its portfolio also includes joint venture, strategic equity positions and royalty participation in uranium development and exploration companies that provide additional geographic diversification and uranium exposure for shareholders.
For further information contact:
Marc Henderson, President and CEO Evan Hughes, General Manager - Australia
Toronto, Canada +1 (416) 599 7363 Brisbane, Australia +61 (07) 3831 3407
Or visit our web site at www.Laramide.com
This press release contains forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.