Madison Metals, Star Minerals ink binding agreement for uranium project
Madison Metals Inc. and Star Minerals Limited have sealed a binding agreement involving the Cobra Uranium Project located in Namibia’s Erongo Uranium Province.
Under the terms of a binding agreement, Star Minerals can earn up to a 51% interest in Exclusive Prospecting Licence 8531, also known as the Cobra Uranium Project, through a series of staged commitments over three years. These commitments include cash payments, stock issuance to Madison, and exploration expenditures, totaling approximately US$4.4 million if all earn-in options are exercised.
Performance shares
Additionally, Star Minerals will issue performance shares to Madison upon reaching key exploration milestones. Following the completion of the earn-in, a joint venture will be formed between Madison and Star Minerals to further explore and potentially develop the Cobra Uranium Project. Future contributions will be made on a pro-rata basis by both parties.
Duane Parnham, Madison’s Executive Chairman and CEO, expressed excitement about the partnership, highlighting the operational synergy between the two companies. He emphasized that the agreement enhances Madison’s presence in Namibia, which is globally recognized for its supportive regulatory environment for uranium mining. Parnham also underscored the potential for this partnership to drive sustainable uranium production and generate value for shareholders.
As part of the agreement, Madison is obligated to issue 450,000 common shares in two equal tranches to a non-arm’s-length individual, marking a significant milestone for both companies as they pursue further uranium exploration and development in one of the world’s leading uranium mining regions.
