Elevate Uranium Ltd has announced the sale of its Oobagooma Uranium Project in Western Australia to Orpheus Uranium Ltd, as part of its strategy to focus on advancing its Namibian and Northern Territory uranium assets and developing its proprietary U-pgrade™ beneficiation technology.
According to a company statement, the divestment aligns with Elevate’s plan to streamline its portfolio and concentrate on its Namibian projects, including the Marenica Uranium Project, where the U-pgrade™ process has demonstrated potential to cut both operating and capital costs by around 50%.
The company said the proprietary technology can significantly increase ore grades and reduce mass before leaching, improving efficiency and lowering costs.
“Divestment of non-core assets is consistent with Elevate’s strategic focus on the commissioning of the U-pgrade™ demonstration plant and advancing its Namibian and Northern Territory uranium portfolio,” the company said.
Under the agreement, Orpheus, through its wholly owned subsidiary Trachre Pty Ltd, will acquire 100% of the Oobagooma Project, located 75 kilometres northeast of Derby in the Kimberley region.
The transaction includes a non-refundable payment of N$565,000 (A$50,000) for exclusivity, an upfront cash payment of N$1.98 million (A$175,000), and the issue of 20 million fully paid Orpheus shares upon completion.
Additional milestone payments include 15 million shares upon the start of exploration within three years, and a further 25 million shares following completion of a 2,400-metre drilling programme within five years.
Completion of the sale is subject to standard regulatory and shareholder approvals, as well as the execution of royalty and third-party agreements with Paladin Energy and Orano Mining.
Once finalised, Elevate is expected to become a substantial shareholder in Orpheus Uranium.
Elevate’s Namibian portfolio comprises six projects in the Erongo region.
The company’s strategy in Namibia focuses on exploring tenements with high potential for surficial uranium mineralisation, with the long-term goal of developing projects to supply uranium for the carbon-free nuclear energy market.
