Cash Minerals Ltd has entered into a Heads of Agreement with East Asia Minerals Corporation to purchase a 100% interest in EAM Exploration LLC, a wholly owned subsidiary of East Asia that owns a portfolio of very prospective uranium properties inMongolia.
The project portfolio includes seven properties, Ulaan Nuur, Ingenii, Enger Ar, Sevsul Bulag, Hutul, Unegt and Bukht Uul, totaling approximately 155,500ha. Three of the properties, Ingenii, Ulaan Nuur, and Enger Ar have historic Soviet uranium resources totaling approximately 25 million pounds of uranium. Drilling by East Asia in 2006 and 2007 confirmed the presence and grades of historical uranium intersections. Mineralization is open and there is good potential to expand the mineralized zones and delineate resources which are likely to be amenable to In-Situ-Recovery.
Cash Minerals will pay to East Asia US$2,000,000 in cash upon signature of the Definitive Agreement and issue East Asia that number of common shares equal in value to US$1,000,000 to be determined upon the date of entering into the Agreement. The company will grant a 1.5% Net Smelter Royalty to East Asia on all properties; a previously existing 1.5% NSR applies to the Enger Ar property.
The Government of Mongolia could soon decide on establishing a joint venture with Russia to develop a Mongolian uranium deposit, the head of the Russian civilian nuclear power corporation, Rosatom, said on Tuesday. At a meeting with Russian Prime Minister Vladimir Putin in the Black Sea resort of Sochi, Sergei Kiriyenko said that Russia had signed an intergovernmental deal on the uranium joint venture early in 2009 but the project stalled due to the change of government in Mongolia.
"Already after the election, we signed an agreement with the new government and in January signed a specific protocol. The government of Mongolia has made a decision on the Dornod-uranium deposit. This deposit is in the ownership of the government of Mongolia," Kiriyenko said. He added that Russia had transferred all the constituent documents on the joint venture to the Mongolian side and the secretary of the Mongolian Security Council has confirmed to Rosatom that a final decision on contributing the deposit to the joint venture would be made soon.
Kiriyenko said work on the deposit could be launched quickly as the deposit was located 300 km (186 miles) from Russia"s neighboring Chita Region where a mining enterprise was situated and whose specialists and equipment could be used in the uranium deposit development.
Rosatom increased production of uranium by 25% in 2009 and has set the task of increasing uranium output by at least 11% in 2010, Kiriyenko said.
