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Heavy Rare Earths Ltd (ASX:HRE) has picked up three uranium projects in South Australia on the back of a deal with Havilah Resources (ASX:HAV).
A binding term sheet inked between the two players has handed HRE an initial 80% interest in the “uranium-rich… Curnamona Province,” the company wrote on Monday. The deal is backed by a HRE-led placement managed by Cygnet Capital.
Havilah, for its part, pointed to the deal allowing earlier-than-expected monetisation of assets. Heavy Rare Earths meanwhile predicts it’s just found a low-cost way to sniff out hard rock and sedimentary uranium targets in Australia’s nuclear state.
HRE has thus picked up three projects, or stakes therein: Havliah’s Radium Hill, Lake Namba-Billeroo, and Prospect Hill. Synergies between a rare earth and uranium miner make sense; REEs are often found alongside thorium and uranium.
Radium Hill was highlighted foremost by HRE on Monday given its nearology credentials – the project is “along strike from” a historic mine of the same name that was originally active between 1954 and 1961. Since then, no exploration has been conducted.
That play saw “2.6 million pounds [at] 0.12% uranium” mined, as well as rare earths. At least some pockets of high grade uranium mineralisation are known to exist on-site along 10k of potential strike with HRE highlighting one drill hit at 1.24% uranium collected historically.
Lake Namba, meanwhile, boasts 50km worth of paleochannels possibly containing uranium, and, HRE described Prospect Hill as “host to an untested geological analogue to the prolific Beverley-Four Mile uranium camp.” Ore at the mine for that project is aquifer hosted.
““This agreement provides us with access to a commanding ground position with an excellent pipeline of projects spanning greenfields at the Prospect Hill and Lake Namba-Billeroo projects, through to brownfields at Radium Hill,” HRE ED Richard Brescianini wrote on Monday.
“We look forward to updating investors on the progress of the acquisition and pending its completion our focus will be to commence exploration as soon as practicable.”
HRE last traded at 3.6cps; HAV at 22.5cps.
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