Uranium developer Vimy Resources has secured a deal to acquire the Alligator River project in the Northern Territory from Canada’s Cameco.
The $6.5 million deal, which will be staged over 30 months, will give Vimy the largest granted tenement package in the Alligator River uranium province, considered to be one of the world’s leading districts for the resource.
Despite the acquisition, Vimy will remain focused on developing its Mulga Rock uranium project in Western Australia. However, the acquisition of the Alligator River assets will provide Vimy with a pipeline of uranium projects, a factor the company believes will be important for it to establish offtake customers.
Vimy managing director Mike Young said the company was acquiring one of the best global uranium exploration packages.“Cameco Australia has done an outstanding job and we’re looking forward to building on their exploration successes; and as they have retained a buyback option, they keep a toe in the water at the Alligator River project,” Young said. “Vimy will apply its ‘can-do’ approach to the Alligator River project and will hit the ground running.”
The Alligator River uranium province has a proven exploration track record with over 750 million pounds (Mlbs) U3O8 in mineral resources and has produced 312Mlbs of uranium over the past 65 years.
Vimy’s acquisition comprises three separate tenement packages covering a total area of 3865km2 including 1600km2 of granted exploration licences.
The Alligator River tenements are on Aboriginal land vested in the Arnhem Land Aboriginal Land Trust and managed by the Northern Land Council on behalf of the Traditional Landowners.