Bradda Head to Acquire Six Uranium Exploration Licences in Tanzania for Up to US$1.8 Million

en.Wedoany.com Reported - Bradda Head Lithium announced that it has signed a conditional, binding asset purchase agreement with Zeus Resources (T) Limited and its parent company US1 Critical Minerals to acquire, through a newly established wholly owned subsidiary BHL Tanzania Limited, a 100% interest in six uranium exploration licences in Tanzania, covering projects including Mkuju, Eland and Foxy. The total consideration for the transaction is up to US$1.8 million, of which US$1 million will be paid in cash upon completion of the transaction, and the remaining US$800,000 is tied to subsequent resource milestones and mine development milestones. The transaction has not yet been completed and remains subject to closing conditions including approval by the Tanzania Mining Commission, completion of licence transfer registration, and payment of statutory fees and taxes.

The licences to be acquired are numbered PL 11703/2021, PL 11704/2021, PL 11705/2021, PL 11708/2021, PL 11709/2021 and PL 12354/2023. Of the consideration, US$300,000 will be payable after Bradda Head confirms, in accordance with NI 43-101 standards, a resource of at least 25 million pounds of U3O8 in the indicated category, the measured category, or both combined; the other US$500,000 will be payable after the project completes a definitive feasibility study and a formal decision is made to construct and operate a mine using uranium resources within the scope of any of the above licences. Both deferred payments may be settled at the company's option in cash or shares. Bradda Head will also pay Zeus an exclusivity fee of US$120,000 to cover licence annual fees falling due before completion; if the transaction is not completed by October 15, this fee is in principle required to be refunded immediately.

The core of the asset package is the Mkuju project, where four contiguous licences cover approximately 725 square kilometres in total, including the Likuyu North deposit, the Likuyu South target and the Mtonya-SWC exploration corridor. Likuyu North has an existing 2022 JORC resource of 7.7 million tonnes of ore at an average U3O8 grade of 267 ppm, containing approximately 4.6 million pounds of uranium oxide, of which indicated and inferred resources each account for approximately 2.3 million pounds. The existing resource model is mainly distributed within 150 metres below surface, with mineralisation hosted in relatively permeable coarse-grained sandstone. A related technical assessment in 2024 suggested that the deposit may be amenable to in-situ recovery, but at this stage it remains at the technical assessment and exploration stage, and no final engineering plan for ISR development has been established.

The Mkuju assets also retain several resource expansion targets. Mtonya-SWC is an approximately 14-kilometre-long roll-front uranium mineralisation exploration corridor, with existing surface uranium anomalies and mineralised intercepts in drill holes; Likuyu South forms an approximately 15-kilometre-long radiometric anomaly trend, where historical drilling has been relatively limited. The Eland project previously returned rock chip samples of up to 4,120 ppm Nb2O5, 571 ppm Ta2O5 and 832 ppm U3O8, and trench sampling was completed in 2024; the Foxy project has historically completed 19 drill holes, of which hole FRC014 intersected a 6-metre mineralised interval averaging 217 ppm U3O8, including a higher-grade interval of 2 metres at 405 ppm U3O8, and the existing drill lines remain open to the northwest.

Under the asset purchase agreement, Zeus and US1 are required to provide warranties on matters including licence title, valid status, compliance, absence of encumbrances, litigation and environmental liabilities, and to indemnify for environmental liabilities arising from relevant acts prior to completion. Following completion of the transaction, Bradda Head plans to commence preliminary exploration work within the licence areas within 12 months and to continue completing technical due diligence on licence title and historical exploration data. The next material milestone is obtaining the Tanzania Mining Commission's consent to the licence transfer and completing the transaction; at this stage, the transaction cannot be described as the commencement of a uranium project or the start of mine development.