ALX Uranium (TSXV: AL) announced this week that it has signed a binding option agreement with Orano Canada to earn up to a 51% participating interest in the Close Lake uranium project located in the eastern Athabasca Basin area of northern Saskatchewan, Canada.

In a media statement, ALX said the execution of the agreement confirms a five-year deal according to which the company has to fund exploration expenditures for a total amount of $12 million. ALX also has to issue 10,000,000 common shares to Orano.

Close Lake is currently the subject of a joint venture in which Orano, as the operator, holds a 74.4% interest, with Cameco Corporation (TSX: CCO) holding a 14.9% interest, and JCU holding the remaining 10.6% interest.

Based on the new agreement, ALX can earn up to a 51% interest from Orano, subject to a back-in right to be retained by the latter.

Later on and upon having exercised any portion of its options, ALX will be required to become a party to the joint venture agreement between Orano, Cameco, and JCU. Meanwhile, Orano will remain the operator of the project during ALX's option period.

"ALX and Orano are on the verge of initiating a multi-year exploration program with the goal of locating a new, high-grade uranium deposit in the Athabasca Basin," Warren Stanyer, ALX CEO said.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

Part of the Stock Digest family of websites

Small Cap Stock Digest

MARKET SUMMARY

INDICES

Name Last Change
DOW 26112.50 0.09%
S&P 500 2889.67 0.09%
NASDAQ 7845.02 0.62%
TSX 16353.45 0.32%
TSX-V 584.62 0.00%

Resource Commodities

Name Last Change
Gold 1336.10 0.27%
Silver 14.84 0.00
Copper 2.65 2.647
Platinum 901.00 0.67%
Oil 52.51 0.44%
Natural Gas 2.39 2.60%
Uranium 24.50 0.53%
Zinc 1.11 0.00%

@RSDigest ON TWITTER