LONDON (Alliance News) - Highlands Natural Resources PLC shares rose on Friday after it said it has entered into a co-operation agreement with US firm Ticaboo Minerals Inc to potentially mine for uranium in Utah in the US.
Highlands shares were trading up 23% to 17.15 pence per share on Friday afternoon.
Highlands has signed the co-operation deal with Ticaboo to secure 26 non-patented mining claims in Grand County, Utah, covering 537 acres of land that Highlands is hoping to extract uranium from.
Highlands said it evaluated oil and gas well logs in Utah which have uncovered a potential Uranium discovery that it believes it can monetise. Highlands has paid USD32,000 for the mining claims, which has been satisfied from existing cash resources.
If anything other than uranium is found, Highlands will be entitled to keep it under the agreement.
Highlands will now need to apply for all permits and approvals necessary for exploration operations, including drilling for core samples to test the uranium ore body within three months.
"The costs of this are not expected to be significant. Following this, the company plans to begin exploration operations, only with the mutual consent of both parties, which includes the drilling for core samples, no later than six months after all permits and approvals have been received," said the company.
"Highlands will apply for all permits and approvals necessary for mining within six months of the completion of the analysis of the core samples and geology, if it is determined that there is an economic ore body worth mining," it added.
If successful, Highlands will pay Ticaboo a royalty of 2% of the gross value of the minerals produced from the area covered by the mining claims, and Highlands has the first right of refusal to secure any other mining claims or interests in minerals in Utah which Ticaboo proposes to sell.
"Although unexpected, having analysed the well logs we are eager to further evaluate the potential of these 26 mining claims, starting with the application for permits to enable us to commence exploration operations. I look forward to providing further updates with regards to our progress in due course," said Highlands Chief Executive Robert Price.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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