The farm-in and joint venture (JV) agreement includes a tenement package of 2,292km² in the Wiso Basin.
It will allow Areva Resources Australia to gain 51% stake in the JV properties if the company spends A$500,000 ($438,535) within two years. Areva will then have an option to buy a further 29% interest by spending $1.5m in four years.
Data from geophysical surveys have shown a possible palaeo-channel system with an exploration target which is capable of significant basin sized uranium mineralization, Toro Energy said.
Toro believes that the Wiso Basin tenement package is well placed for exploring sandstone-hosted uranium mineralizing system.
Toro managing director Vanessa Guthrie said: "We are excited to have AREVA participate in our substantial exploration portfolio at a time when few companies are actively exploring in Australia for uranium."
The companies plan to start drilling in the first half of 2015.
