awh corp. to acquire turkish uranium project

http://www.proactiveinvestors.com.au/companies/news/5488/awh-corporation-to-acquire-turkish-uranium-project--5488.html




"AWH Corporation (ASX: AWH) has signed an agreement with Aldridge Uranium Inc and other parties to conditionally acquire up to a 75% interest in an advanced uranium project located in Turkey.

The Project is located in one of the most significant and richest uranium districts in Turkey.

The Project area was first investigated in the 1980s by the Turkish State through the General Directorate of Mineral Research and Exploration (MTA). The area now subject to the transaction was secured by the companys future joint venture partner, Aldridge.

Historic leach tests on two ore types returned over 80% and 90% recoveries for alkaline and acid leach respectively. Uranium mineralisation appears amenable to extraction using In-Situ Leach (ISL) methodology. The development of the Project has strong support from the Provincial, Municipal and local authorities.

The project has available infrastructure.

MTA discovered several sedimentary palaeochannelrelated uranium occurrences within the Project area, the key features of which are:

- 94 granted exploration licences covering some 140,000 ha of what is considered to be one of the most significant and richest uranium districts in Turkey.

- Historic data for one of the uranium deposits in the Project suggests an immediate in-situ leach exploration target of 8 10Mlb of contained uranium at a grade of between 250 to 500ppm (0.025-0.05%) U3O8.

The Company believes that further in-fill drilling may rapidly result in delineation of a JORC compliant resource. This mineralisation, additional to the 8-10Mlb exploration target, appears open in all directions.

The company intends to fund the acquisition through a combination of debt and equity, the details of which will be included in the notice of meeting. It is intended that the Company will apply these funds towards the exploration of the Project.

Under the terms of the Scheme of Arrangement Implementation and Farm-In Joint Venture Agreement, the company will: carry out a consolidation of capital on a basis of one (1) AWH share for 12.65 AWH shares; acquire an initial 35% shareholding in Aldridge by issuing to the Aldridge shareholders 67,250,000 AWH shares.

In addition, it will acquire a further 40% shareholding in Aldridge (for a total of 75%) through spending a maximum of A$15 million within a three year period on the exploration licences to advance to a Bankable Feasibility Study level enabling the establishment of a future commercial mining operation.

On delivery of a JORC compliant estimated resource of 20Mlb of contained U3O8, the company will issue 47.25 million AWH shares to Aldridge shareholders."