Buffalo Gold (BUF.U-V) may have to change its name if its latest acquisition pans out. The Vancouver-based junior announced on Wednesday Mar. 15 that it is taking a prospective uranium property in Australia.
Buffalo has acquired a 100% interest in the Murphy Ridge project in the Northern territory of Australia from Global Discovery — a private Australian company.
The Murphy Ridge project is within the same tectonic area and along strike from Laramide Resources’ (LAM-V) Westmoreland Project in Queensland and comprises two exploration permits covering roughly 2,300 square km. The company says the target is unconformity style uranium with a setting analogous to the world-class Ranger and Jabiluka Mines, also in the Northern Territory.
Buffalo signed a binding letter of intent on the project, paying Global roughly $42,000 as an initial non-refundable payment that provides for a due diligence period that expires on October 11, 2006. Once due diligence is complete, Buffalo can exercise its option and acquire 100% of the project by issuing Global 200,000 shares of Buffalo and making another roughly $42,000 payment on the anniversary date of the option exercise.
The press release says Global will work with Buffalo to capture further uranium project opportunities.
The acquisition comes as uranium prices have grown in the last year from below US$10 per lb. to current levels almost US$40 lb.
Buffalo believes strong industry fundamentals are fuelling the price increase, as present world mine output are little more than half the level of consumption by consumers of global uranium supply, the release says.
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