Uranium exploration company U3O8 Corp has signed a definitive agreement with Avocet Resources to explore the Sierra Cuadrada project in Chubut Province, Argentina.
As per the agreed terms, Avocet has an option to acquire 51% stake in the Sierra Cuadrada project by investing $1m to explore the deposit over a four-year term.
The project is an early-stage prospect for sandstone-hosted uranium mineralization and Avocet will exclusively manage the project’s exploration.
U3O8 Corp president and CEO Dr Richard Spencer said that with the Avocet joint venture, the company is exposed to additional potential for uranium discovery in Argentina, a country with focus on enhancing a its domestic supply.
"When its third reactor comes online this year, Argentina will derive 9% of its electricity from nuclear – and a fourth reactor is also out for tender.
"Uranium is viewed as a strategic resource in Argentina where the government just signed nuclear cooperation agreements with the United Arab Emirates and China," Spencer said.
Spencer added that the company’s extensive land position, will help U3O8 Corp benefit from Argentina’s growing demand for uranium.