Toro Energy (ASX: TOE) is a uranium explorer operating in Western Australia, the Northern Territory, South Australia and in the African country of Namibia.
The company’s Western Australian Wiluna Project is at an advanced stage in government assessment and approval. The project hosts two shallow, generally less than 10m deep, calcrete deposits with a Measured, Indicated and Inferred resource of 24.4Mlbs of contained uranium
Toro Energy: JV partner set to explore for heavy rare earth elements at Browns Range
Toro Energy (ASX: TOE) in a very strategic move has executed an agreement with Northern Minerals (ASX: NTU) to initiate a new joint venture.
The agreement allows for Northern to explore for non-uranium minerals on seven of Toro’s wholly owned tenements in the Tanami region of the Northern Territory.
Northern intends to focus on heavy rare earth elements as part of its Browns Range project while Toro retains 100% of all uranium rights throughout the joint venture.
Greg Hall, managing director of Toro, commented on the opportunity:
“We are very pleased to have Northern Minerals as a joint venture partner in the Tanami region and look forward to working together to progress this underexplored region.
"Toro believes there is great opportunity not only for rare earths but also gold and uranium and we hope this joint venture will help drive additional fresh exploration in the region.”
Terms of the joint venture
- The agreement allows Northern to earn up to 80% interest in non-uranium minerals in the tenements over a five year period in various stages;
- In the first stage, Northern has agreed to spend $4 million on exploration over the first three years to earn a 51% interest;
- In the second stage, Northern has the option to increase its interest to 70% by spending an additional $2 million over the following two years; and
- Finally, Northern has the option to complete a Bankable or Definitive Feasibility Study and lift its equity position in non-uranium minerals to 80% if Toro chooses not to contribute.
The tenements lie around the southern margin of the Browns Range Dome and, in particular, have substantial potential for unconformity style uranium.
Highlighting the prospectivity of the area, the single previous explorer, Japanese company, PNC Ltd, had identified a 20 kilometre long belt of geology that is directly analogous with that of the Alligator River Uranium Field, which hosts the Ranger and Jabiluka uranium deposits.
PNC created a sizable dataset that will enable Toro to fast-track its own uranium exploration in the area, which will also assist in the exploration for other commodities by the joint venture partners.
Toro remains very well-funded
Toro had $18.5 million in cash at the end of the September 2011 quarter.
