Laramide buys New Mexico uranium royalty portfolio

Vancouver – Laramide Resources (LAM-T, LMRXF-O) has acquired a royalty package on a number of uranium projects located in the Grant’s mineral district of New Mexico.

The royalty portfolio was purchased from United Nuclear, a wholly-owned indirect subsidiary of General Electric, for US$9.25 million in staged payments (US$3.5 million paid with the remainder keyed to issuance of regulatory production permits).

Specific royalties are sliding-scale gross revenue at a minimum of 5% and up to a maximum 24% dependent on spot uranium prices.

The three separate property parcels (Section 8, Section 17 and Mancos), all located in the Churchrock area of McKinley Cty, are owned by Uranium Resources (URRE-O).

Uranium Resources is advancing its Section 8 mineral lease through final stages of a feasibility study and reports to be well into environmental permitting procedures. It envisions an insitu leach operation on the project with a historical resource of about 6.5 million contained lbs. of U3O8.

Laramide is also active on its own projects in the district. Its La Jara Mesa deposit hosts a measured and indicated resource of 1.4 million tonnes grading 0.23% U3O8 (about 7.3 million contained lbs. of U3O8) plus an additional 720,000 inferred tonnes averaging 0.20% U3O8 (about 3.2 million contained lbs. of U3O8). The resource is hosted in sandstones as tabular bodies (roll front deposit type) with the uranium occurring as the oxide mineral coffinite.

A current 10-hole, 3,000-metre drill program at La Jara Mesa is confirming grades and extracting material for additional metallurgical tests.

Laramide’s flagship project is its Westmoreland copper-gold-uranium project in Queensland, Australia. The deposit hosts a JORC-compliant inferred resource of 17.4 million tonnes of 0.12% U3O8, about 46 million contained lbs. of U3O8.

The company recently announced a planned $17.25-million bought deal financing of 2.3-million units at $7.50 apiece.

With its 50.4 million shares outstanding, Laramide posts a $395-million market capitalization based on its recent $7.85 trading price. The stock has a 52-week range of $4.06-to-$8.50.

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