North America-focused explorer Okapi Resources has extended the option date of its proposed acquisition of the Hansen uranium project in Colorado, US by 30 days to give both parties time to finalise and execute a definitive deal.
Last month, Okapi entered into a binding agreement with STB Minerals to pick up a 51 per cent interest in the high-grade uranium project.
The deal will allow Okapi to stretch its Tallahassee project resources by 81 per cent to 49.8 million pounds of triuranium octoxide and lift the grade by 10 per cent to 540 parts per million.
The Hansen project is situated directly south of Okapi’s fully owned Taylor and Boyer uranium deposits and also takes in the Picnic Tree deposit.
According to the company, Hansen contains a JORC mineral resource of 22.2 million pounds triuranium octoxide going 610 parts per million.
Okapi's updated JORC mineral resource for the broader Tallahassee uranium project will weigh in at 42.0 million tonnes at 540ppm for 49.8 million pounds of triuranium octoxide once the Hansen acquisition has been finalised.
According to the company, the greater Tallahassee Creek uranium district hosts more than 100 million pounds of triuranium octoxide with opportunity to expand the existing resource base by acquiring additional assets.
Under the original terms of the deal set out last month, Okapi and STB Minerals have agreed to an eight-year option to purchase the 51 per cent mineral interest in the Hansen uranium deposit.
Okapi will hand over US$50,000 to STB on the execution of the binding term sheet and US$450,000 if a definitive option agreement is signed within 60 days of the deal.
The pact will also allow Okapi to hold onto the option for five years by paying US$250,000 per year and another three years by paying US$500,000 per year, subject to inflation.
The company has the right to conduct mineral prospecting, exploration, development and mining on the Hansen uranium project ground during the option period.
Option can be exercised at any time by Okapi during the eight years by paying US$5m, at which point STB Minerals will transfer its entire 51 per cent mineral interest, with a 1.5 per cent net return royalty reserved.
Okapi says its strategy is to become a leader in North American carbon-free nuclear energy by assembling a portfolio of high-quality uranium assets through acquisitions and exploration.
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By Matt Birney
