GeoXplor is expected to sell 100% ownership of two uranium-vanadium mines in the La Sal uranium district in southeastern Utah to Northwestern Mineral Ventures following the signing of a letter of intent.
The Firefly and Gray Daun Mines, collectively known as the Firefly Project, originally ceased operations in the late 1970s when production was no longer economic owing to world uranium prices. A substantial increase in the price of uranium could make these deposits economically viable once more. Firefly contains 39 mineral claims covering 315 hectares approximately 370km southeast of Salt Lake City.
Toronto, Canada-based Northwestern will pay $5.1 million to acquire the Firefly Project, including an initial payment of $100,000 and an additional payment of $5 million once a decision is made to commence production or in July 2011, whichever is earlier.
Kabir Ahmed, president and CEO of Northwestern said: “Firefly is a highly prospective property that augments our portfolio of quality uranium prospects. We expect our acquisition of the Firefly Project will enable Northwestern to capitalise on commodity prices that are currently near historic highs.”