Rio Tinto has been granted an option to explore for coal on some of Uranium Resources’ southern Tanzania licence areas.
The agreement lasts for 12 months and covers nearly 3,000 square kilometres of exploration licence area. Rio Tinto has the right to earn a 51% interest by funding in $7m in exploration spending following any farm-in agreement. It can earn another 29% by completing a pre-feasibility study.
Shares in Uranium Resources rose 0.25p to 1.625p each, which values the company at £4.73m.
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