The Yanrey North area is north of Cauldron’s Yanrey Exploration Project which hosts the Bennet Well uranium deposit.
Oceltip has will fund exploration to the value of $2 million over an initial three year earn-in period to earn 60%.
Cauldron’s chairman Tony Sage said: “The expenditure committed in this farm-in and future joint venture demonstrates Cauldron’s belief in the exploration potential of the entire project area.”
The Yanrey North area which the farm-in agreement pertains to granted E08/2017, E08/2385, E08/2386, E08/2387 and applications for E08/2666, E08/2667 and E08/2668 once granted.
Farm-in to provide renewed exploration focus
Oceltip has the option to extend the earn-in period by a further two years if it has spent at least $1 million in the first three years.
At successful completion of the earn-in period a joint venture will be formed with 60% interest held by Oceltip and the balance held by Cauldron.