The La Sal property was previously encumbered, preventing Laramide from developing the asset despite its advanced status as a previously permitted project with a 1200mt access drive constructed and with access to a commercial mill.
The La Sal property contained a resource estimated by technical consultants engaged by the previous owner for purposes of mine planning, before the implementation of NI 43-101 requirements. The resource consisted of 440,000 tons grading 0.31% U3O8, for 2.7 million contained pounds U3O8. The resource was estimated using a minimum undiluted thickness of 6′ at a cut-off grade of 0.16% U3O8.
As per the terms of the settlement agreement, Laramide has agreed to exercise its option to acquire the La Sal property granted to Laramide by Homestake Mining Company of California (Homestake) and certain related entities.
The acquisition is in line with an option, sale and purchase agreement dated August 8, 2005, for consideration of $500,000 and related transfer costs of the La Sal property, a further payment of $250,000 required upon successfully permitting of the La Sal property, and a final payment of $500,000 upon the La Sal property commencing commercial production.
Marc Henderson, president and CEO of Laramide Resources, said: “We are pleased to have a court approved settlement allowing us to close off this long-standing title transfer issue, and proceed with developing a mine in Utah. La Sal’s existing infrastructure and relatively high grade mineralization make it a potentially economic deposit even at today’s spot prices, with a short time horizon to get through permitting, and limited capital expenditure to re-open the previous construction.”
