Global Atomic Fuels and AREVA Mines have signed a memorandum of understanding (MOU) on DASA Project in the Republic of Niger.

Some of the areas covered under the MOU include an ore sales agreement between the two companies, as per which a minimum of 100,000 tonnes of ore per annum will be delivered from Global Atomic Fuels’ DASA Project to New AREVA’s processing facilities in Arlit, for a period of five years.

Other aspects of the MOU include allowing Global Atomic Fuels will use New AREVA’s metallurgical and assay lab facilities in France. The highlights of the MOU also include coordination of logistics to advance the development of the DASA project; and mutual assistance and cooperation between both companies and their respective operations in Niger.

Global Atomic Fuels chairman, president and CEO Stephen G. Roman said: “this is an historic agreement that will facilitate a substantial level of cooperation between two major contributors to the uranium industry in Niger.

“The Ore Sales Agreement with New AREVA will enable Global Atomic to substantially reduce its up-front capex, pre-development costs and timeframes of the DASA project. We will now seek to advance the DASA project, on significantly improved economics, bringing one of the highest-grade uranium projects in Africa to production on an accelerated timescale.”

DASA Project, located in Southwest of the Adrar Emoles 3 Permit (AE3) covers about 121.3km2 within the Tim Mersoi Basin. It is 120km from Niger’s second largest city Agadez. The project started when Global Atomic signed a mining agreement with the Republic of Niger’s government in 2007.