Madison Metals Inc. has recently announced a significant partnership with Star Minerals Limited, an Australian company. The agreement involves Star Minerals earning up to a 51% interest in the Cobra Uranium Project located at Madison North near the Rossing Uranium Mine in Namibia’s Erongo Uranium Province.
The partnership agreement outlines that Star Minerals will make staged cash payments, issue common shares to Madison, and carry out exploration expenditures over a three-year period to earn its stake in the project. If Star Minerals exercises all earn-in options, Madison stands to receive cash, stock, and work expenditures valued at approximately US$4.4 million. Furthermore, specific exploration milestones will trigger the issuance of performance shares from Star Minerals to Madison. Once the earn-in is successfully completed, Madison and Star Minerals will establish a joint venture to further explore and potentially develop the Cobra Uranium Project, with contributions to be made on a pro-rata basis.
Duane Parnham, Executive Chairman and CEO of Madison Metals, expressed excitement about the partnership with Star Minerals, highlighting the potential for significant value creation for both companies and their shareholders. The collaboration expands Madison’s presence in Namibia, a key uranium mining jurisdiction known for its supportive regulatory environment and history in the uranium industry. By leveraging partnerships like this one, Madison aims to accelerate exploration and development activities while focusing on long-term value creation for its shareholders.
As part of the agreement, Madison is required to issue 450,000 common shares in two equal tranches to a non-arms-length individual. The first half of shares will be issued upon execution of the agreement, with the remaining shares to be issued once Star Minerals reaches its first earn-in milestone.
The Cobra Uranium Project’s strategic location in Namibia positions it favorably for uranium mining, aligning with the country’s reputation as a top global jurisdiction for this industry. The partnership with Star Minerals reflects Madison’s commitment to driving sustainable uranium production to meet global energy needs while maximizing value for stakeholders.
Overall, this partnership between Madison Metals and Star Minerals marks a significant step towards advancing uranium exploration and development in Namibia, showcasing the potential for growth and collaboration in the mining sector.