SYDNEY: Deep Yellow Limited has entered into a binding agreement to acquire Energy Resources of Australia’s 50% stake in the Cooper Creek joint venture, expanding the company’s holdings in the Alligator Rivers Uranium Province of Australia’s Northern Territory.
The acquisition, valued at 648,000 Australian dollars in cash, is expected to close within 10 business days after standard conditions, including government approvals, are satisfied. The Cooper Creek JV holds two exploration license applications covering 810 square kilometers in the northern part of the uranium-rich province.
“The acquisition of ERA’s participating interest in the Cooper Creek JV represents a strategically significant addition to Deep Yellow’s tenure in the Northern Territory,” Managing Director and CEO Greg Field said in a statement. “It gives our exploration team another great opportunity to apply their rigorous exploration model and deep technical expertise to discover large, high-grade uranium deposits.”
The Cooper Creek JV partners include Cameco Australia Proprietary Limited, a wholly owned subsidiary of Cameco Corporation, which holds a 40% stake and serves as joint venture manager, and Sutton Motors Proprietary Limited, which holds 10%.
Deep Yellow’s existing tenure in the Alligator Rivers Uranium Province includes the Angulari Deposit, where the company has identified an inferred mineral resource of 32.9 million pounds of U3O8 at 1.09% grade. Following completion of the acquisition, Deep Yellow’s tenure and prospective tenure across various exploration licenses will total 4,820 square kilometers.
The Alligator Rivers Uranium Province lies in West Arnhem Land and is home to high-grade uranium deposits including Ranger, Jabiluka and Nabarkek.
Deep Yellow, an Australian Securities Exchange-listed company, is advancing a dual-pillar growth strategy aimed at becoming a globally diversified uranium producer with a targeted production profile exceeding 10 million pounds per annum. The company’s development portfolio is anchored by the Tumas Project in Namibia and the Mulga Rock Project in Western Australia.
Field said the Cooper Creek deal aligns with the company’s strategy to expand its portfolio of uranium assets, with the Tumas Project remaining its key focus. “We are delighted to be part of a joint venture led by global uranium major Cameco,” he said.
The company cautioned that forward-looking statements in the announcement are subject to risks including commodity price fluctuations, supply and demand changes, labor and material shortages, inflation, capital availability and geopolitical risks.
