zambesi deal with rio on uranium search

Sydney - Tuesday - September 18 (RWE Australian Business News) -
Zambezi Resources (ASX:ZRL) has signed a Letter of Intent with Rio Tinto
(ASX:RIO) over certain Uranium Mineral Rights at Mulofwe Dome.
Under terms agreed in the Letter of Intent, Rio Tinto will
commit to spend US$1 million minimum to assess the Uranium
mineralisation over approximately 1,250 km2 of the Mulofwe prospect. Rio
Tinto may elect to spend an additional US$5 million to earn 51% of the
Uranium Minerals rights, in which case the parties have agreed to form
an Incorporated Joint Venture.
Once Rio Tinto has earned a 51% interest in the project, Zambezi
may elect to retain their 49% interest by meeting their share of
expenditure or elect to dilute to 20% in which case Rio Tinto may earn
an addition 29% for a total of 80% by completing a Bank Feasibility
Study.
Zambezi may elect to convert their interest to a 2.5% Net
Smelter Royalty at any time after Rio Tinto has earned its 51% share of
the project. Rio Tinto will be the manager of the exploration program
and any Joint Venture entered into.