First Development Resources, a subsidiary of Power Metal Resources, has agreed to purchase a 100% stake in Selta project owner URE Metals.

Situated in the Northern Territory of Australia, the Selta project is expected to be a significant source for uranium (U) and rare-earth element (REE) mineralisation.

The Northern Territory consists of Australian high-grade U and REE deposits, including Arafura Resources’ Nolans Bore REE deposit, which is situated less than 70km away from the Selta Project.

With an of 1,574.92 km2, Selta project includes three exploration licence applications.

Earlier surface sampling across the Selta project has determined elevated uranium results up to 3.8 parts per million (ppm) uranium in soil samples, stream sediment samples up to 27.2ppm uranium and rock chip samples up to 244ppm uranium.

Assayed whole rock grab samples from the Selta project have also shown anomalous rare-earth element mineralisation, including 93ppm neodymium (Nd) and 25ppm praseodymium (Pr), said the company.

In addition, the Selta project is said to be highly-prospective for base and precious-metal mineralisastion.

Power Metal Resources CEO Paul Johnson said: “This latest acquisition further builds the First Development Resources portfolio which now includes four distinct project interests.

“This dynamic portfolio includes the Wallal Project located in the prolific Paterson Province of Western Australia, with exciting magnetic bullseye gold-copper drill targets – and now the Selta Project, located in the Northern Territory, within a region highly prospective for U and REE mineralisation, evidenced by the nearby Nolans Bore deposit held by Arafura Resources.”

Under the deal, FDR will initially pay A$25,000 (£13,465) by the end of this year to purchase a 100% stake in URE. It will help cover historic expenses.

In July this year, Power Metal Resources exercised its option to buy a 100% stake in two gold-nickel exploration licences located within the Tati Greenstone Belt located near Francistown, Botswana.