Fortbridge Media ReleaseEast Africa Resources [ASX: EAF] - Heads of Agreement signed with KORESEast Africa Resources Limited (ASX: EAF) has entered into a Heads of Agreement (HOA) with Korea Resources Corporation (KORES) for KORES to invest in EAFs Mkuju South uranium project in Tanzania.
The HOA covers the terms of investing directly into one of EAFs Southern Mkuju projects, which is the subject of prospecting licence application HQ-P15779 located at Mkuju South (Prospecting Right). A definitive agreement is expected within 60 days of signing the HOA.
When finalised, the agreement between EAF and KORES will see KORES commit to a staged investment of US$3.5 million to secure a 50% interest in the Mkuju South uranium project over a 24 month period.
In addition to its shareholding in the project, KORES will earn the right to purchase up to 100% of the uranium produced from the area which is the subject of the Prospecting Right, on commercial arms length terms to be agreed between the parties.
East Africa Resources Chairman and CEO, Louis Coetzee, said that the agreement with KORES will allow the Company to rapidly progress exploration activities as well as provide a buyer for the uranium.
Mr Coetzee said that the Company was looking forward to working with KORES and expects to benefit from their involvement and experience as a major investor in mineral exploration programs around the world.
Korea Resources Corporation has over 40 years experience in the sector, and is a partner that is fully committed to identifying new and strategic resources to support Koreas industry and growth aspirations. We are very pleased with this association and the opportunity to develop a partnership to explore and prove up uranium resources in Tanzania, Mr Coetzee said.
Please find more details in the attached announcement.
For further information, please contact:
Louis Coetzee
East Africa Resources Limited
Tel: +61 8 9227 3270
Email:
Media:
Fortbridge
Tel: +61 2 9003 0477
Peter-John Lewis: +61 416 290 604
Bill Kemmery: +61 400 122 449