Uranium Resources has completed an agreement to explore 53,500 acres in Kenedy County, Texas, for three years, with an option to lease the acreage for uranium production.
The lease, which is located within the South Texas uranium district, will have a primary term of eight years after lease commencement.
Situated near uranium mining operations, which produce from the Goliad formation, the property also hosts several oil and gas fields and is bisected by a major depositional channel system.
These provide the geologic, stratigraphic, and geochemical components for uranium deposition and water-saturated host sand with good rock permeability.
The lease option agreement requires a minimum exploration obligation of one hundred exploration wells or $1.0m investment in the first year.
In the second year, the agreement requires an additional two hundred exploration wells or $1.5m investment and an additional two hundred exploration wells or $2.0m investment in the third year.
URI had earlier signed a non-binding letter of intent with Cameco Resources for a three-phase exploration program that will be funded by Cameco Resources with an option for a production joint venture.