Mega Uranium Ltd. is pleased to announce that Cameco Australia Pty Ltd, a wholly owned subsidiary of Cameco Corporation has earned a 51% interest in Mega's Kintyre Rocks project, located in the East Pilbara region of Western Australia and held by Boxcut Mining Pty Ltd, a wholly-owned subsidiary of Mega.
The Project immediately surrounds the lease containing the Kintyre uranium deposit, jointly owned by Cameco and Mitsubishi Development Pty Ltd.
Cameco earned the interest in the Project by sole funding expenditures for exploration activities of AUD$2,000,000 in accordance with the parties' farm-in and joint venture agreement. A joint venture has now been formed between Boxcut and Cameco in accordance with the agreement for the purpose of exploring the Project and, if such exploration indicates the probable existence of a commercially mineable mineral resource in any part of that area, to carry out certain feasibility studies.
Cameco has also notified Boxcut of its election to earn an additional 19% interest in the Project (representing a total possible interest of 70%) by sole funding expenditures for exploration activities of AUD$4,000,000 (inclusive of the AUD$2,000,000 spent to earn the 51% interest in the Project) within four (4) years from the date of the agreement. Boxcut is not required to contribute to expenditures on the Project while Cameco is sole funding expenditures.