Under the terms of the LOI, Calypso has agreed to grant Cameco the option to acquire a 51% interest in EMI in consideration of Cameco investing C$10,000,000 in exploration and development expenses on Calypso's Argentine uranium properties over a maximum four year period
– By Mark McFadden –
CALYPSO URANIUM CORP. has announced that the company has signed a non-binding Letter of Intent ("LOI") with Cameco Corporation ("Cameco") to enter into a joint venture agreement to explore and develop the majority of Calypso's uranium projects in Argentina through an equity investment by Cameco in Calypso's wholly-owned subsidiary Energia Mineral Inc. (EMI).
Under the terms of the LOI, Calypso has agreed to grant Cameco the option to acquire a 51% interest in EMI in consideration of Cameco investing C$10,000,000 in exploration and development expenses on Calypso's Argentine uranium properties over a maximum four year period. The LOI provides that the first $2,500,000 of the option will be a firm commitment and the balance will be at Cameco's discretion. The EMI project areas included in the LOI cover approximately 423,000 hectares and include the La Pintada, Ranquil Co, Central Block, Campesino Norte and San Jorge Basin projects. EMI's Huemul project in the Province of Mendoza is excluded from the terms of the LOI. The arrangement with Cameco is subject to the completion of due diligence; the negotiation and execution of definitive agreements; and the approval of the TSX Venture Exchange.
"Calypso is extremely pleased to have Cameco as a potential partner and to be able to add Cameco's expertise and strength to the already solid efforts of our Energia Mineral team in Argentina," said Stephen Barley, President of Calypso. "EMI controls a large area of excellent prospects and the synergies generated by our joint participation will allow us to better advance the development of these projects over the long term.
As exploration operator, Energia Mineral brings its local capacity and experience to carry out the project exploration phase. For projects that show potential to move beyond the exploration stage, Cameco's industry experience and leadership will provide solid backing for the development and production phases."
Under the terms of the LOI, EMI will continue to lead exploration activities during the option period based on exploration proposals approved by a joint technical committee. In the event Cameco exercises its option and acquires a 51% interest in EMI, Cameco has the right but not the obligation to become the operator.
"Cameco is not only a global leader in uranium exploration and development, but they also share our commitment to ensure broad community support, and to work to the highest national and international health and safety and environmental standards," said Guillermo Pensado, Vice President Exploration of Calypso and President of Energia Mineral (Inc.). Pensado added: "While Argentina currently imports all its uranium needs, we believe it has the geological potential to be totally self-sufficient. Energia Mineral looks forward to contributing to the development of Argentina's uranium potential."
Cameco, with its head office in Saskatoon, Saskatchewan, Canada, is one of the world's largest uranium producers. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.
Calypso Uranium Corp. is a mineral exploration company whose principal focus is the exploration and development of uranium properties in Argentina and in the United States. Calypso is active in Argentina with more than 447,000 hectares or 4,470km2 of claims and mineral concessions in the provinces of Chubut, Mendoza and Neuquen. Through the Argentine branch of its subsidiary Energia Mineral Inc., the Company has an exploration office located in Mendoza working closely with local communities while operating to the highest national and international safety and environmental standards. To promote transparency and to build awareness and public understanding of uranium exploration, all of Calypso's environmental impact reports and its "Radiological Safety and Protection Guide for Uranium Exploration" are posted on its website. While maintaining its principal focus on the development of the Argentine uranium projects, in June 2008, Calypso entered into an option agreement to acquire an interest in the Sage Creek properties located in Converse County, Wyoming. Calypso is well-funded to advance all exploration projects and has the technical team and management structure for this effort.