18 Mar 2016 14:45
18 March 2016
Highlands Natural Resources plc ('Highlands' or 'the Company')
Signs Cooperation Agreement for Potential Uranium Discovery in Utah, US
Highlands, the London listed oil and gas company, is pleased to announce that it has entered into a Cooperation Agreement ('the Agreement') with Ticaboo Minerals, Inc. ('Ticaboo'), a Colorado corporation, and Highlands has received an assignment covering 100% of 26 unpatented Mining Claims in Grand County, Utah covering approximately 537 acres ('the Mining Claims'). This follows Highlands' evaluation of oil and gas well logs in Utah which have uncovered a potential Uranium discovery, which can be mined via an in-situ solution mining process and is an extension of the Company's strategy to evaluate potential value adding acquisitions. The consideration of US$32,000 has been satisfied through a cash payment. The Mining Claims cover uranium and all other locatable minerals.
Under the terms of the Agreement, Highlands is obligated to apply for all permits and approvals necessary for exploration operations for the Mining Claims, 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. 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.
Should this potential discovery be deemed commercial, Highlands shall pay Ticaboo a production royalty of 2% of the gross value at the mine of all ore and material containing minerals produced, saved and sold from the Mining Claims.
Ticaboo has also agreed that Highlands shall have a first right of Refusal to purchase other mining claims or interests in minerals in Grand County, Utah which Ticaboo proposes to sell.
Highlands CEO Robert Price said, "This is an exciting opportunity for Highlands. In line with our strategy to couple our 75% interest in the DT Ultravert refrac technology, which could be a breakthrough for the industry, with compelling acquisitions, and to add to our exploration lease in North Dakota, we have encountered a potential uranium discovery in Utah whilst evaluating oil and gas well logs. 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."
**ENDS**
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