Motapa to explore Gabon uranium with Cameco, Pitchstone
2006-03-01 10:21 ET - News Release
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Also News Release (C-CCO) Cameco Corp
Also News Release (C-PXP) Pitchstone Exploration Ltd
Dr. Larry Ott of Moapata reports
MOTAPA, CAMECO AND PITCHSTONE SIGN LETTER AGREEMENT TO EXPLORE GABON URANIUM
Motapa Diamonds Inc. has signed a letter of agreement with Cameco Corp. and Pitchstone Exploration Ltd. to jointly explore Motapa's uranium exploration licences in Gabon.
Motapa has received confirmation from the Gabon Ministry of Mines, Energy, Petroleum and Hydraulic Resources that Motapa's application for exclusive rights to explore for uranium over licences covering 396,100 hectares of the Francevillian basin in east-central Gabon has been approved. The licences were applied for on the basis of results of geochemical analyses of samples collected concurrent with Motapa's diamond exploration work in Gabon.
The Proterozoic Francevillian basin of Gabon is analogous to the Athabasca basin of Saskatchewan. Deposits in Francevillian have produced in the order of 100 million pounds of U3O8, ranking it as one of the world's most significant uranium districts. The parties feel the region is underexplored and offers excellent potential.
Terms of the letter agreement provide Cameco and Pitchstone with the option to earn a 56-per-cent interest in the licences (28 per cent each) by incurring exploration expenditures of $3.5-million ($1.75-million each) over a four-year period. Subsequent to this initial vesting period, Cameco and Pitchstone will have a second option to acquire an additional 24-per-cent interest (12 per cent each) by expending a further $8.5-million ($4.25-million each) within three years following the completion of initial vesting.
"We are delighted to involve Cameco and Pitchstone on this project," said Dr. Larry Ott, chief executive officer of Motapa. "The uranium exploration expertise of both Pitchstone and Cameco, together with the industry strength of Cameco, provides an opportunity to aggressively advance the project on the basis of sound technical merit."
The letter agreement is subject to the satisfactory completion of a due diligence review by Cameco and Pitchstone by May 31, 2006, and is further subject to the waiver by Motapa's alliance partner BHP Billiton to certain back in rights to the project pursuant to a pre-existing agreement.
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