NORTH America-focused junior explorer Uranium King has acquired...

NORTH America-focused junior explorer Uranium King has acquired new uranium-prospective landholdings in New Mexico, adding 10% to the resources of its Rio Puerco project.

Previous exploration at Uranium King's newly acquired Smith claims area in the 1980s had established non-JORC resources in the vicinity of 500,000 pounds of uranium oxide with 385,000lb in the pre-JORC reserve category, the company said.

"Based on the historical exploration results and a review of the project … the opportunity to increase the quantum of potential resources within the project area is considered significant," Uranium King said.

The Smith claims are adjacent to the company's existing Rio Puerco project, which already has a JORC-compliant resource of 4.5 million pounds at 0.12% uranium. The project is part of the "highly prospective" East Grants mineral belt of New Mexico.

The company also said while the cost of the acquisition was confidential, it was "easily satisfied" by the company's existing cash reserves.

Shares in Uranium King closed at 79c down 4.8%