A Korean state-backed consortium has formed a $6.2 million joint venture with West Perth-based junior explorer Scimitar Resources Ltd to progress the Marree uranium project in South Australia.
The consortium, which includes government-owned Korea Resources Corp and Daewoo International Corp, can earn a 50 per cent stake in the project by spending $6.2 million over a three year period.
"This agreement is very beneficial for Australia and South Australia as it concerns discovering and developing a valuable resource that can produce strong future export returns," Scimitar managing director Terry Topping said in a statement.
Scimitar shares were steady at 13 cents by 1536 AEDT.
The Korean consortium joins Japanese and Chinese interests in the hunt for uranium in South Australia.
Japan's second-biggest trading company, Mitsui & Co, last week agreed to take a 49 per cent stake in Uranium One Inc's exploration portfolio for $104 million, including the emerging Honeymoon mine.
China's state-backed Sinosteel Corp formed a joint venture with junior explorer PepinNini Minerals Ltd in June 2007 to progress the Crocker Well uranium project.
Scimitar's Marree project is located 550 kilometres north of Adelaide in the Eromanga Basin.
"Uranium production and its use in sophisticated countries such as Korea is important for anyone who wishes to see reduced burning of fossil fuels," Mr Topping said.
The Korean consortium also includes LG International Corp and STX Corp.
SIM Price at posting:
13.0¢ Sentiment: None Disclosure: Not Held
