Toro Energy has signed a memorandum of understanding (MOU) with U3O8 Ltd to acquire 100% of the Dawson-Hinkler Well Uranium Project near Wiluna in Western Australia for A$6.2m ($6.05m).

The completion of the acquisition would add significant additional resources close to Toro’s advanced Wiluna Uranium Project currently being assessed for approval by the Western Australian and the federal governments.

The addition would increase Toro’s total Wiluna uranium resource base by 25% to 30 million pounds.

The project comprises tenements ML53/1092, E53/1254, E53/1169 and E53/1136, approximately 20km west of Toro’s Centipede deposit, one of two in the Wiluna Project, as illustrated by the map on Page 4 of this release.

The company said that the acquisition would not affect the current assessment of the Wiluna Project by the Western Australian and federal governments, as further exploration and evaluation work is required on Dawson-Hinkler Well.

Dawson-Hinkler Well is an early stage project with a significant, albeit Inferred resource base that requires additional work to move it forward as a potential uranium production asset.

In the near term, additional drilling is required; resource extension, classification upgrade and re-modeling will need to be completed before advancing the project into a potential mining study phase.