Completes Acquisition of Tanzanian Prospecting Licences
15 September 2005
Uranium Resources plc, the AIM listed uranium development company, has completed the acquisition of Deep Yellow Tanzania Ltd ('Deep Yellow'), the owners of four uranium prospecting licences in Tanzania, for £350,000. The consideration comprises £50,000 in cash and the issue of 6,000,000 ordinary shares at 5p per share.
The licences, covering an area of approximately 2,500 sq km, represent one of the largest uranium exploration land packages in Tanzania. Three of the licences are located in the Mkuju River area in southern Tanzania while the fourth, the Makutapora Prospect is in central Tanzania. As reported by the Company on 18 July, previous exploration in the late 1970's early 1980's identified the licences as highly prospective for uranium.
The Company has appointed Drake-Brockman Geoinfo Pty Ltd to manage the exploration programme which has begun with a review of all of the historical literature and radiometric data and will continue with the formulation of a detailed exploration programme. Initially, this will entail the evaluation of existing geological and geophysical information including geosurvey radiometric maps, Landsat images and basic topographic information. The Company also intends to acquire 128 channel spectrometric aircraft-borne Hymap data over the tenement areas to define stratigraphy and possible channel areas, delineate possible redox fronts through ferric/ferrous discrimination, isolate possible reaction halos through clay mineralogy discrimination and enable a more accurate interpretation of radiometric data. Furthermore, a ground survey will be conducted to ground truth the data and to allow the collection of samples to calibrate the Hymap data.
Drake-Brockman Geoinfo Pty Ltd is the operating company of Dr Joseph Drake-Brockman. Dr Drake-Brockman has worked for 20 years in uranium exploration mainly in Australia and Tanzania. He has specific knowledge of the project area as he participated in the initial exploration of the Mkuju Uranium in Sandstone Project immediately adjacent to ground held by Uranium Resources in Tanzania. His doctorial thesis was written on the sedimentology and mineralogy of U-Cu and Pb-Zn in sandstones. He also has extensive experience in sandstones from the Frome Basin, Australia and the Tanzanian Karroo
In accordance with the terms of the sale and purchase agreement, application has been made for the new ordinary shares to trade on AIM and it is expected that dealings in these shares will commence on 21 September 2005. The new ordinary shares will rank pari passu in all respects with the existing shares in issue.