Cauldron Energy Limited (ASX: CXU), an ASX-listed uranium-focussed company, 100% owner of the Yanrey Uranium Project, announced the termination of a 2020 agreement related to river sand leases in Western Australia. The agreement, initially aimed at acquiring 100% ownership of leases at Onslow, Carnarvon, and Derby rivers, has been modified, resulting in Cauldron retaining full control of the Onslow tenements.
Under the terminated Purchase Agreement, Cauldron was to provide initial share considerations and production payments. The revised terms now stipulate that Cauldron will retain the Onslow tenements (E08/2328, E08/2329, E08/2642, M08/487 and L08/71) without any further liability for initial share considerations, production payments, or royalties. Additionally, 2,000,000 of the initially issued 8,000,000 shares will be cancelled, and the vendors will retain the Carnarvon and Derby tenements.
Cauldron CEO Jonathan Fisher stated that retaining the Onslow tenements at no further cost, along with the cancellation of 2 million shares, is an excellent outcome for the company. He added that the time and costs associated with gaining approval to mine the Derby and Carnarvon tenements were considered commercially unviable. The elimination of production payments and royalties from the Onslow tenements removes a significant impediment for future transactions.
Fisher noted that the holdings in the Onslow area are strategic as the company continues to plan for the future development of the Yanrey uranium project. The announcement was authorised for release by Ian Mulholland, Cauldron’s non-executive Chairman.
