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Rose Petroleum inks uranium project divestment deal

Published: 18:34 27 Nov 2018 AEDT

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Rose receives US$300,000 worth of enCore shares

Rose Petroleum PLC (LON:ROSE) has entered into new arrangements for the divestment of its non-core Vane Minerals uranium projects in the United States.

It has agreed the ‘database agreement’ with enCore Energy Corporation (CVE:EU) which initially sees the AIM-quoted company receiving US$300,000 worth of shares.

The shares come with a four-month lock-up agreement, though the company will be able to sell the shares in due course subject to certain orderly market provisions.

READ: Rose Petroleum receives final permit to start drilling at Paradox acreage

encore will have five years to use the Vane database to generate exploration prospects, and to subsequently develop these prospects into commercial operations. It will also have the first right of refusal to acquire any mineral rights on the 8 project areas covered by the database agreement.

If any projects emerge from the data to the development stage, Rose will have the opportunity to articipate up to a maximum stake of 25%.

"I'm delighted that we have been able to complete this agreement with ENCORE, to utilise our extensive database, which not only provides the group with upfront consideration but which will also enable Rose to retain an interest in any projects that move forward to development should we wish to do so,” said Matthew Idiens, Rose chief executive.

“The joint venture Agreement with ENCORE, in addition to the disposals of the Group's Wate project and the SDA mill in Mexico last year, is in line with our strategy of creating value from our non-core assets whilst focusing on our onshore North-American oil and gas activities."

The North Wash stratabound vanadium/uranium project, in Utah, is not included in the agreement because it is the subject of separate talks with third parties, and, that may lead a separate transaction.

Rose added that North Wash has seen significantly more industry interest due to the strength of the present vanadium market, supported by the emergence of new battery technologies.

The project was partially detailed in a 2012 pre-scoping study which covered preliminary design engineering sufficient to gain an indicative estimate of capital and operating costs, manpower requirements and a preliminary development and production schedule.

It now shows the project has the potential to be developed into a commercial project, the company said.

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on 22/6/18