Okapi Resources Ltd (ASX:OKR, FRA:260) has finalised the acquisition of Tallahassee Resources Pty Ltd and its portfolio of large, high-grade uranium projects in the United States.
Tallahassee holds a 100% interest in mineral rights that cover around 7,500 acres in the Tallahassee Creek Uranium District of Colorado along with an option to acquire 100% of the Rattler Uranium Project, in north-eastern Utah.
The Colorado project Includes the Tallahassee Uranium Project while the Rattler project incorporates the historical high-grade Rattlesnake open pit mine.
Promisingly, Okapi is well-funded to execute a strategic plan with A$6 million in cash and cash equivalents.
“Acquisition truly transformational”
Okapi executive director David Nour said: “This acquisition is truly transformational for Okapi and underpins our new strategy to become one of the most prominent uranium developers in North America.
“We believe that the global push towards clean energy as a way of lowering carbon emissions will significantly increase global demand for uranium for the foreseeable future.
“Okapi is well placed to take advantage of this once in a generation macro-economic shift.”
Shares have been as much as 4.76% higher intra-day to A$0.44.
Bullish outlook for uranium
The acquisition of Tallahassee provides Okapi immediate leverage to several large, high-grade uranium projects in the US, together with direct access to a team that has in-depth knowledge of, and experience operating in, the North American uranium sector.
A JORC 2004 mineral resource estimate indicates the Tallahassee Uranium Project contains 26 million pounds of uranium at a grade of 540ppm uranium, with strong exploration upside.
Okapi’s strategy is to capitalise on the bullish outlook for the uranium sector, by rapidly building its North American assets via accretive acquisitions and successful exploration to become a new leader in North American carbon-free nuclear energy.
Technical director
Okapi has appointed Ben Vallerine to the board as a non-executive technical director to help achieve the company’s objectives.
Vallerine is a qualified geologist with 20 years of experience who brings considerable in-country experience to Okapi.
Nour said: “On behalf of the board, I welcome Ben to the board of Okapi and the Tallahassee team. I thank all shareholders for their continuous support.”
Forward plan
Okapi has already begun fieldwork at the Rattler Uranium Project, where it aims to embark upon a 10,000-metre drilling program to expand and improve confidence upon the existing resource base and acquire samples for metallurgical test work.
Furthermore, the company is also considering the opportunity to acquire additional mineral rights in close proximity to those it currently holds to expand its resource base and enhance project economics.
- Ephrems Joseph