Okapi Resources Ltd (ASX:OKR) has entered into a binding agreement to divest its interest in the Lake Johnston Project in central Western Australia to Nordau Pty Ltd for a total consideration of up to $1.2 million.
As per the terms, both parties have agreed on an initial of $150,000 upon completion of the sale, with considerable upside through additional performance milestones.
Looking ahead, Okapi’s divestment of non-core assets strengthens its focus on developing and growing high-quality uranium projects in North America.
“Preserving upside exposure”
Okapi managing director Andrew Ferrier said: “Okapi is continuing to simplify and restructure the business with the sale of one of its non-core assets, the Lake Johnson Project.
“The transaction crystallises value for our shareholders today, while also preserving upside exposure from exploration success at the properties.
“The divestment also allows the company to continue to focus on advancing and developing its high-quality uranium projects in North America.”
Agreement summary
The Lake Johnston Project consists of exploration tenement E63/2039 and the joint venture with Charger Metals NL (ASX:CHR) in tenement E63/1903 (JV agreement).
The total consideration under the sale agreement is up to $1.2 million, which includes a non-refundable cash payment of $20,000 on signing the sale agreement and a further $130,000 cash upon completion of the sale.
The remaining consideration consists of performance shares that are dependent on certain milestones being achieved.
Milestones
The performance shares will be subject to the following performance share values and performance milestones and will have the following expiry dates:
Performance share milestones
What is happening in North America?
Okapi recently acquired a portfolio of advanced, high-grade uranium assets located in the United States of America.
Assets are strategically positioned in one of the most prolific uranium districts in the USA – the Tallahassee Creek Uranium District in Colorado.
The greater Tallahassee Creek Uranium District hosts more than 100 million pounds of uranium trioxide with considerable opportunity to expand the existing resource base through the acquisition of additional complementary assets in the district.
The portfolio of assets also includes an option to acquire 100% of the high-grade Rattler Uranium Project in Utah, which includes the historical Rattlesnake open pit mine.
The Rattler Uranium Project is just 85 kilometres from the White Mesa Uranium Mill, the only operating conventional uranium mill in the USA, and provides a near-term, low-capital development opportunity.