URU Metals Limited Enters Option Agreement with Cameco over Nueltin Lake Gold-Uranium Discovery

URU Metals Limited, the  base metals and uranium explorer and development company, announces that on 5 February, 2013 it has signed an exclusive option agreement with Cameco Corporation (“Cameco”), one of the world’s largest uranium companies, to earn a majority interest in Nueltin Lake Gold-Uranium Project, in the Kivalliq Region of the Territory of Nunavut, Canada.

Under the terms of the option agreement, URU Metals will fund a total of CDN$2.5 million on exploration expenditures over a three-year period in return for a 51 per cent stake in the Project (“the First Option”). On completion of the First Option, URU has the option to earn an additional 19 per cent interest in the project by funding a further CDN$8.0 million in exploration over a four-year period (“the Second Option”). 

On successful completion of both options, the Company would have earned a 70 per cent interest in the Project by completing CDN$10.5 million in exploration expenditures over a seven-year period.  URU will be the project operator over the option earn-in period.

After URU completes its earn-in requirement under the Option Agreement, the parties will enter into a standard joint venture agreement, the form of which has already been agreed to and appended to the Option Agreement.

Commenting on the Option Agreement,  Roger Lemaitre, CEO of URU Metals said: “We are delighted to be able to announce our option over the Nueltin Lake Gold-Uranium Project, which is an exciting new project for the Company, located in a great mining jurisdiction.  Nueltin Lake represents a rare opportunity to become involved on the ground floor of a new polymetallic mineral discovery, where the high technical and financial risks associated with making a discovery on a grassroots project have already been satisfied. We get to go to work defining the ultimate size of the potential resource.

“On completion of a bankable feasibility study and subject to the joint venture agreement, Cameco has got the option to purchase 100 per cent of the uranium produced, providing us with an end user for the uranium. The Nueltin Lake project fits in with our strategy of identifying, investing and developing the next generation of accretive mineral project opportunities and  I look forward to updating shareholders on the exploration programme.”