Madison Metals acquired its position through a share purchase agreement and aims to explore uranium deposits.
Canadian ‘green’ energy resource company Madison Metals has entered into an agreement to acquire a 23% interest in mining license (ML) 121 in Namibia through the acquisition of a 24% ownership interest in Namibia Nuclear Corporation by way of a share purchase agreement.
Rössing-type uranium
Madison Metals aims to build value by advancing Rössing-type uranium deposits identified in Kenora, Ontario, Canada and Namibia by utilizing cutting-edge technology and modern strategies.
The 24% interest was bought for a combination of USD 2 million cash and two-million common shares in the capital of Madison Metals, to be paid and issued on the closing date.
ML 121 is in the Erongo uranium province of Namibia, where Madison already holds rights to Exclusive Prospecting License (EPL) 7011.
Namibia is the world’s second-highest uranium-producing country and holds the fifth-largest total uranium resources globally.
Madison Metals: Consolidating holdings
Through the transaction, Madison Metals “is looking to consolidate ownership of land holdings in the uranium province with the goal to build upon minable uranium resources by expanding currently known uranium zones and making new discoveries,” said Executive Chairman and CEO Duane Parnham.
The company is also consolidating its various land holdings as a result of the continued expansion in the uranium province, combined with the high likelihood of common infrastructure.
Madison Metals has designated that EPL 7011 and EPL 8531, previously Rössing North, will be consolidated under the property name Madison North. Additionally, EPL 8115 and ML 121, previously Rössing West, will be consolidated under the property name Madison West.
EPL 8531 is 50 km north-east of Swakopmund and surrounds the Arandis townlands. The Rössing Mine lies about 50 km east of the property. EPL 8115 is 42 km east of Swakopmund and spans an area of about 61 km2.
The property is 18 km southwest of the Rössing Uranium Mine, the world’s longest-running open-pit uranium mine, and 12 km west of the Husab Mine. Other properties in the vicinity that have NI 43-101-compliant resources include the Etango project to the southwest and Ida Dome to the south-east.
EPL 8115 is underexplored and Madison plans to capitalize on the potential of this area, considered to be highly prospective for leucogranite-hosted uranium mineralization.