- Okapi Resources (OKR) enters a binding conditional agreement with ALX Resources to acquire six advanced exploration projects in Canada
- The company will acquire a 100 per cent interest in five of the projects and an 80 per cent interest in one for a combination of cash and shares
- Initially, Okapi will focus on the Cluff Lake and Newnham Lake projects with aims to target high-grade uranium deposits
- The acquisition is subject to Okapi completing due diligence investigations on ALX and the projects
- Shares in Okapi are up 1.82 per cent on the market and are trading at 56 cents
Okapi Resources (OKR) has entered a binding conditional agreement with ALX Resources to acquire six advanced exploration projects.
These projects lie in the Athabasca Basin in Canada, which is considered the world’s premier uranium district and hosts the world’s largest and highest-grade uranium mines.
Okapi will acquire a 100 per cent interest in five of the projects — Newnham Lake, Perch, Lazy Edward Bay, Kelic Lake and Argo — and an 80 per cent interest in the Cluff Lake Project.
Within three days of executing the acquisition agreement, Okapi will pay a $50,000 non-refundable deposit to ALX in exchange for a 60-day exclusivity period.
On completion of the agreement, Okapi will pay $1 million in cash to ALX and will also issue $1.05 million worth of shares.
Additionally, Okapi will grant ALX a 1.5 per cent net smelter return royalty (NSR) on minerals produced from certain mineral claims.
The acquisition is subject to Okapi completing due diligence investigations on ALX and the projects, and Okapi obtaining approval from the Australian Securities and Investments Commission (ASIC) to increase its interest in its own securities to an amount between 20 and 90 per cent.
These conditions must be satisfied or waived within 60 days of the acquisition agreement.
Initially, Okapi will focus on the Cluff Lake and Newnham Lake projects with aims to target high-grade uranium deposits.
“This acquisition is highly complementary to Okapi’s existing portfolio of advanced uranium projects providing Okapi shareholders with exposure across the full exploration and development spectrum,” Executive Director David Nour said.
“A number of world-class uranium discoveries have been made in the Athabasca Basin in recent years following new advancements in the understanding and exploration of high-grade unconformity style uranium deposits.”
Shares in Okapi were up 1.82 per cent on the market and were trading at 56 cents at 1:51 pm AEDT.