Antipa Minerals (ASX: AZY) has entered into a split commodity agreement with major uranium miner Paladin Energy (ASX: PDN), as well as applying for additional exploration licenses in the Paterson Province.
Antipa expects to complete the agreement with Paladin within the week, alongside continuous holding of exploration licenses over 2,967 square kilometres, and will consolidate Antipa’s current position as the largest holder of granted mining tenements in the Paterson Province.
Under the agreement, Paladin will withdraw existing exploration licence applications at the project, which have priority over Antipa’s applications, granting Paladin rights to uranium over the area and providing Antipa with exploration and production rights to all other minerals.
Antipa will also issue A$180,000 worth of shares to Paladin and the granting of a 1% net smelter return royalty paid to Paladin upon the sale of minerals excluding uranium.
In other Antipa news, the company also applied for additional exploration licenses covering 1,253 square kilometres of land adjoining Antipa’s wholly-owned Citadel Project.
The project area covered by the company’s applications run south from the southern border of Antipa’s tenements to within 20 kilometres of Newcrest’s (ASX: NCM) Telfer gold-copper mine and 25 kilometres of the O’Callaghans tungsten-base metal deposit, one of the world’s largest tungsten deposits.
Antipa expects the granting of the applications following negotiations with relevant stakeholders including native title parties.
Highlighting the potential of the area, the new applications surround Newcrest’s satellite gold deposits, as well as associated Mineral Resources (ASX: MIN) located at Minyari Hills and WACA.