URI will provide an additional $1.5m in exploration activities, to maintain the option to lease the property.
Under Phase II of the agreement with URI, Cameco will fund $1m toward those exploration activities and will earn an additional 10% interest in Los Finados, increasing its interest in the project to 50%.
Cameco can also earn an additional 20% interest in the property by investing additional $1.5m investment in exploration and development expenses associated with the third and final phase of the project.
On completion of the exploration program, the parties may enter into an operating joint venture to develop and produce any discovered uranium resources and reserves.
The uranium would be processed at URI’s Kingsville Dome or Rosita processing facility, with Cameco’s share of production being processed under a toll processing agreement with URI.
