Sydney, Dec 12, 2007 (ABN Newswire) - Uranium Exploration Australia Limited (ASX: UXA) has signed a binding Farm-in Agreement and Heads of Joint Venture agreement with RIL (Australia) Pty Limited (RILA), a subsidiary of Reliance Industries Limited.
Broadcast Type: Audio stream
Audio webcast Link:
http://abnnewswire.net/alnk/P223DO77
Listen to the Audio stream and view the announcement for Uranium Exploration Australia Limited (ASX: UXA) below.
http://abnnewswire.net/vlnk/B9P55231
Reliance Industries Limited (RIL) is a publicly traded company headquartered in Mumbai, India and listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). RIL is a Fortune Global 500 Company and the largest private sector company in India with interests in oil and gas exploration and production, including petroleum refining, petrochemicals and marketing (www.ril.com). Through its subsidiary RILA, RIL seeks to participate in the Australian energy sector including uranium exploration and mining.
Under the terms of the Farm-in Agreement, RILA will receive 49% interest in four of UXA's exploration licences (ELs) in South Australia and four of UXA's exploration licence applications (ELAs) in the Northern Territory (following grant to EL status). In exchange, UXA will receive cash considerations totalling $3.45 million, being $1.15 million as payment for prior exploration data and $2.3 million earn-in to be applied towards UXA's share of future exploration expenditure.
In addition, RILA will contribute its 49% share of future exploration expenditures. UXA and RILA intend to pursue an aggressive exploration programme on these tenements over the next three years with an estimated outlay of up to $19.4 million.
Commenting on the deal, UXA's Managing Director Mr Patrick Mutz said, "We are very excited to have a company of the calibre and status of RIL as UXA's second joint venture partner, after the May 2007 joint venture with Newcrest Operations Limited."
"The agreement with RIL is significant for several very important reasons. The involvement by a large corporate entity such as RIL signals its confidence in UXA's combination of prospective ground, exploration expertise and management qualifications to advance these assets."
"In addition, RIL's entry into the uranium exploration industry in Australia underscores the strong fundamentals of the uranium market going forward, with medium and long-term pressures on the price of uranium due to supply limitations."
"Finally, involvement by a joint venture partner of RIL's standing with ready access to capital bodes well should the company realise its goal of discovery and resource development through to production. We look forward to a strong and positive working relationship with our new partner."
Contact
Phone: +61 8 8363 7970
Fax: +61 8 8363 7963
Email: info@uxa.com.au
Web: www.uxa.com.au
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