Madison Metals Inc. has announced that it has entered into a binding letter of intent with Giraffe Energy Investments Close Corporation and Otjiwa Mining and Prospecting Close Corporation for the acquisition of an 85% interest in 3 separate concessions, named the Rössing North Uranium Project.
Madison will pay N$2.3 million (US$150,000) in cash and issue 1,600,000 common shares of the Company to the two companies, which will be subject to a hold period expiring four months and one day after the closing date.
The Rössing North Uranium Project collectively consists of 38,391 hectares and is located directly adjacent to the Rössing Uranium Mine.
“The area currently hosts excellent infrastructure developed on and around the site. Previous owners conducted limited exploration including a reverse circulation drill program which produced a JORC complaint report prepared by SRK Consulting (UK) Limited in November 2015. Madison is enthusiastic about the property as SRK has determined the uranium mineralization is open along strike, at depth and contained within well-defined uranium bearing alaskite beds. SRK also recommended the undertaking of further exploration with a view to determining both extensions to the two larger areas of mineralization already discovered and other areas of the property not yet drilled,” the company said.
Property wide exploration has also identified 11 new uranium mineralization areas throughout the property that warrant further evaluation by Madison in the future, the company said.
“Dr. Laine and I worked closely on the acquisition, exploration and development, including obtaining a mining license at the Valencia uranium deposit in Namibia for Forsys Metals which I founded. We plan on deploying the same skills and strategies to aggressively advance the Rössing North Project into another successful development project for the Company and its stakeholders,” Duane Parnham from Madison said.
