Vimy Resources Limited (ASX:VMY) announced that it has entered into a binding sale agreement with Cameco Australia Pty Ltd to acquire its Alligator River project in Arnhem Land, Northern Territory for a cash consideration of A$6.5M staged over 30 months.
As quoted in the press release:
Vimy will acquire the largest granted tenement package in the Alligator River uranium province. This province is considered to be one of the top three uranium exploration districts in the world, with the others being the Athabasca Basin located in Canada, and the Chu-Saraysu and Syrdarya Basins in Kazakhstan.
The tenements are on Aboriginal land vested in the Arnhem Land Aboriginal Land Trust and managed by the Northern Land Council on behalf of the Traditional Landowners. Deeds of Agreement exist for all granted tenure covering exploration activity along with commercial terms and conditions for future mining activity, which ensures that the environment will be protected and that Traditional Landowners and local Aboriginal Communities will benefit from Royalties and jobs.
While the Mulga Rock Project is the Company’s core focus, the acquisition of the Alligator River Project provides Vimy with a pipeline of uranium projects from a world-class province. This is an important factor for offtake customers who look to establish long-term relationships with reliable producers.
Mike Young, CEO and managing director, commented:
We are really excited to be acquiring one of the best uranium exploration packages globally. Cameco Australia has done an outstanding job and we’re looking forward to building on their exploration successes; and as they have retained a buyback option, they keep a toe in the water at the ARP. Vimy will apply its ‘can-do’ approach to the Alligator River Project and will hit the ground running.