The Directors of Stonehenge Metals Limited (SHE) are pleased to advise that the Company has entered into an acquisition agreement with Yellow Sun Mines Pty Ltd to acquire 100% of Yellow Sun’s wholly owned Korean subsidiary, Chong Ma Mines Inc (Chong Ma). Chong Ma holds the rights to 4 uranium projects comprised of 42 granted mining rights and 14 uranium mining right applications (together the Uranium Projects) in South Korea.
The directors believe that this historical exploration provides a solid foundation to rapidly upgrade the existing historical foreign uranium resource estimates to JORC compliant status ahead of a mining feasibility study. The Directors are of the opinion that the Uranium Projects present a near term opportunity for development due to South Korea’s high dependence on imports of U3O8 and robust prices for uranium combined with increasing worldwide demand for nuclear power. The projects also hold significant potential for economic quantities of Vanadium and Molybdenum. The acquisition of the Uranium Projects will occur by Stonehenge acquiring 100% of Chong Ma which holds the rights to the Uranium Projects.
Stonehenge has entered into an agreement to acquire 100% of the issued capital of Chong Ma therefore giving Stonehenge the right to acquire 100% of the Uranium Projects. The Uranium Projects comprise 42 granted mining rights, including the Pyeonghae Option Property held via an acquisition agreement and 14 mining right applications, held directly by Chong Ma. Stonehenge will acquire 100% of Chong Ma, or 100% of the mining rights to the Uranium Projects from Yellow Sun on terms such as Chong Ma holding valid rights and title to 14 application properties since it is a 100% subsidiary of Yellow Sun. Stonehenge will pay A$110,000 to Yellow Sun, to allow Yellow Sun to repay a loan advanced by King Resources Pty Ltd (King) so that Yellow Sun and Chong Ma could complete the Sim Acquisition Agreement. Chong Ma has, through the initial payment of US$100,000 (A$110,000), secured 100% of the interest and rights to the Sim Properties and 1/9 of the title to the Sim Properties. Stonehenge will pay up to A$100,000 prior to Completion, to Yellow Sun, towards the cost of preparing and completing a JORC Code compliant and an NI 43-101 compliant independent geological and resource report.
