9 Jul 2008 07:00
Uranium Resources plc / Market: AIM / Epic: URA / Sector: Exploration
9 July 2008
Uranium Resources plc ("URA" or "the Company")
Update on Tanzanian uranium project areas
Further to the announcement dated 2 July 2008, Uranium Resources plc, the AIM quoted uranium exploration and development company operating in Southern Africa, wishes to update the market on its Tanzanian tenement licences and its farm-in and joint venture arrangements with Western Metals Limited ("WMT").
The Company currently has the following three joint ventures ("JV") in Tanzania:
60:40 JV
As advised to the market on 3 April 2006, the Company entered into a farm-in and joint venture agreement ("60:40 JV") with WMT. As announced on 2 July 2008, WMT have spent A$4 million to earn a 60% interest in the joint venture and the farm-in phase of this agreement is now complete. The Company and WMT will now contribute to the expenses of the joint venture in proportion with their interests in the joint venture. WMT is the manager of the joint venture. The agreement provides that Tanzania shall be an area of mutual interest between the parties.
The Company has been advised by WMT that its share of expenditure for 2008 will be approximately £650,000. URA's cash position remains healthy with in excess of £2.3 million in the bank, which will satisfy its current exploration commitments.
45% JV
WMT and two local businesswomen entered into a sale and purchase agreement ("45% JV") on 27 April 2007 whereby WMT purchased a 90% interest in a mineral right from the businesswomen. Pursuant to the area of mutual interest provisions of the 60:40 JV, WMT offered and the Company accepted a 45% interest in the mineral right. The businesswomen are free carried until the completion of a bankable feasibility study. The Company and WMT contribute to the expenses of exploiting the licence in proportion to their interests in the assets.
42.5% JV
The Company, WMT and a Tanzanian businessman entered into a sale and purchase agreement ("42.5% JV") on 16 November 2006, whereby the Company and WMT purchased an 85% interest (Company 42.5%: WMT 42.5%) in various mineral rights from the businessman. The businessman is free carried until the completion of a bankable feasibility study. The Company and WMT contribute to the expenses of exploiting the licence in proportion to their interests in the assets.
The joint ventures are summarised by project below:
| Project Area | JV Description | JV Partners | Total Land Area (sq km) | ||
| URA | WMT | Local Partner | |||
| Mtonya | 60:40 JV | 40% | 60% | nil | 2,001.2 |
| Ruhuhu | 60:40 JV | 40% | 60% | nil | 979.3 |
| Ruvuma | 42.5% JV | 42.5% | 42.5% | 15% | 10,251.0 |
| Bindi1 | 42.5% JV | 42.5% | 42.5% | 15% | 113.5 |
| Ngaka2 | 45% JV | 45% | 45% | 10% | 211.0 |
Referenced to the Ruvuma Project Area in previous announcements
Referenced to the Ruhuhu Project Area in previous announcements
**ENDS**
For further information please visit www.uraniumresources.co.uk or contact:
| James Pratt | Uranium Resources plc | Tel: 07747 832 043 |
| Hugh Warner | Uranium Resources plc | Tel: +33 643 916 003 |
| Hugh Oram | Nabarro Wells & Co. Limited | Tel: 020 7634 4705 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Felicity Edwards | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
Notes to editors
Uranium Resources plc is an AIM listed uranium exploration and development company focused in Southern Africa. The Company has primarily concentrated on expanding and developing its portfolio of uranium licences in the highly prospective Karoo Basin in Southern Tanzania where it currently has a land package in excess of 13,500 sq km.