Wildhorse Energy has announced that the Hungarian government has formally given approval for the development of a joint venture (JV) between the company and state owned entities to develop the Mecsek Hills uranium project.

The JV will be set up between the company, Hungarian state owned companies Mecsek-Öko and Mecsekérc, and Hungarian Electricity, which is the owner of Paks Nuclear Power Plant supplying 40% of the country’s power.

The company said the resolution is a major step in the development of the project, which hosts JORC inferred resource of 48.3 million tones at 0.072% for 77 million pounds (Mlbs) uranium and an exploration target of an additional 55-90 Mlbs of uranium with a grade range of 0.075-0.10%.

The joint venture partners initially plan to determine the necessary conditions to restart uranium mining in the Mecsek Hills following which it will transfer their uranium licences into the JV company.

Wildhorse Energy managing director Matt Swinney said the Hungarian nuclear sector continues to grow as the country seeks the means to diversify its fuel generation capabilities and reduce its reliance on imported energy sources.

"We are now positioned to establish the JV Company, which we hope will be achieved in the near term, so that we can identify the optimal path for development to maximise the benefit for all stakeholders," he added.