$2m for mining option

Cameron England
The Advertiser

MITSUI & Co is putting its foot on more Australian uranium, paying $2 million for an option over Uranium Equities' Nabarlek project in the Northern Territory.

Mitsui will have the option to invest a minimum $15 million in the Nabarlek project, to earn a 25 per cent stake in it.

Mitsui last year agreed to invest a minimum of $104 million for a 49 per cent stake in Uranium One's Honeymoon mine east of Broken Hill, which is scheduled to start production late next year.

The Japanese company has until the end of July next year to exercise the Nabarlek option.

Mitsui also has an option to secure a 9 per cent stake in Uranium Equities' West Arnhem Land joint venture, which is being pursued with Canadian company Cameco, one of the world's largest uranium producers.

Uranium Equities managing director Bryn Jones said Mitsui's interest was a vote of confidence in the project.

"The Nabarlek lease is arguably the most significant brownfields uranium exploration opportunity in Australia," Mr Jones said.


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