Boss Resources has signed an agreement to acquire Uranium One subsidiary, Uranium One Australia, which owns Honeymoon Uranium project in South Australia.
Under the deal, Boss will pay an initial amount of $2.4m, including a care and maintenance contribution of about $327,000.
Boss intends to form a SPV with Wattle Mining, under which Boss will hold 80% interest in Uranium One Australia, while the remaining 20% stake will be owned by Wattle.
Honeymoon project includes one granted mining lease, five granted exploration licenses, eight retention licenses and two miscellaneous purposes licenses.
The project consists of two main exploration regions, including the Eastern Region that covers Honeymoon, Brooks Dam and East Kalkaroo resources and the Western Region that covers the Goulds Dam and Billeroo deposits.
In the project area, uranium mineralisation is covered by the Yarramba and Billeroo palaeochannels. It includes Palaeogene age palaeovalleys filled by a sequence of inter-bedded sand, silt and clay.
According to the firm, thickness of the palaeochannels at Honeymoon deposit area is expected to reach a maximum of 55m thick.
Subject to various conditions, the deal is expected to be completed in around three months.
Image: Honeymoon production facility in South Australia. Photo: courtesy of Boss Resources Limited.