Sulliden Mining Capital has agreed to acquire a 75% stake in the Orange Creek Uranium Project in Australia.
The purchase will be made through the acquisition of 75% of the issued common shares of private Australian company Orange Creek Resources (Privco) from an unnamed private company (“vendor”).
Under the deal, Sulliden will acquire a 75% interest in Privco by paying A$400,000 ($265,327) to the vendor. The remaining 25% stake will be held by the vendor.
Sulliden will also fund Privco’s ongoing statutory obligations and exploration activities.
Subject to customary closing conditions, the transaction is due to be closed in July 2023.
Prior to the closing of the transaction, Privco will hold the title to the exploration licence, which is considered prospective to the sandstone-hosted, roll-front style uranium mineralisation discovery.
The licence covers 723.9km² of the Amadeus Basin in the Northern Territory.
Located in 38km south of Alice Springs, the Orange Creek project has been explored sporadically since 1977.
The project has undergone very shallow drilling of vacuum holes, reverse air blast holes, percussion holes and diamond drill holes by previous operators that discovered the redox front boundaries.
Sulliden said that multiple historical holes returned geochemically anomalous uranium at the project that exceeded 200ppm U₃O₈ over core lengths of 0.25m-2.0m within 50m of the surface.
In a press statement, Sulliden said: “However, these holes are very widely spaced and no holes have tested the area below the surface extent of the redox boundary in the sandstone, where possible ‘steps’ in the front could be anticipated.
“Such steps are key structural traps in which uranium mineralisation occurs at the nearby Angela and Pamela Deposits at higher concentrations and over wider intervals.”
