Reliance Industries unit signs uranium farm-in, jv deal with Australia's UXA |
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Published
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Mon, 10 Dec 2007 13:51
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MUMBAI (Thomson Financial) - India's largest private sector company Reliance Industries Ltd's unit, RIL (Australia) Pty Ltd, has signed an uranium exploration farm-in and heads of joint venture agreement with Uranium Exploration Australia Ltd (UXA), the latter said in a release.Under the agreement, RIL Australia will receive 49 pct interest in four of UXA's exploration licences in South Australia and four of UXA's exploration licence applications (ELAs) in the Northern Territory, after exploration licences are granted.In exchange, UXA will receive 3.45 mln aud cash of which, 1.15 mln aud will be payment for prior exploration data and 2.30 mln aud earn-in will go towards UXA's share of future exploration expenditure, the release said.RIL Australia will also contribute its 49 pct share of future exploration expenditures.The two companies intend to pursue an exploration programme on these tenements over the next three years with an estimated outlay of up to 19.4 mln aud.Under the agreement, RIL Australia's participation will be retroactive to July 1 and RIL Australia will reimburse UXA 49 pct of exploration costs between July 1 and the date of transfer and registration of interest in the South Australia ELs to RIL Australia.UXA managing director Patrick Mutz said Reliance Industries' entry into the uranium exploration industry in Australia underscores the strong fundamentals of the uranium market going forward, with medium and long-term pressures on the price of uranium due to supply limitations.TFN.newsdesk@thomson.comami/ssa/raCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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India's Reliance Industries sells 4.01 pct stake in Reliance Petroleum 