Exploration program will be undertaken for several years across tens of thousands of square kilometers of Australia which have not been tested earlier.
As part of the deal, MDP will fund 100% of AFMEX’s exploration expenditure for several years up to a predetermined amount, which has not been disclosed.
AREVA senior executive vice president Olivier Wantz said by joining forces through this partnership, the company and Mitsubishi Corporation are gaining the means to develop Australia’s very substantial uranium potential.
"We believe that exploitable low production cost deposits will be discovered there over the long term, hence our mutual commitment to financing such a large-scale exploration effort," added Wantz.
MDP also has an option to acquire 49% of the greenfield uranium exploration permits held by AFMEX in Australia and enter into a joint venture owned 51% by AFMEX and 49% by MDP.
The operations of the new joint venture will be managed by AFMEX.
Australia’s uranium production was 6,200 tons in 2011, being number three uranium producer after Kazakhstan and Canada.
