U3O8 Corp. (TSX:UWE, OTCQX:UWEFF) is in advanced discussions to enter into a joint venture with Petrominera Chubut S.E. (“Petrominera”), the provincial mining company of Chubut Province, Argentina. The proposed partnership would bring together U3O8 Corp’s Laguna Salada Project and adjoining Petrominera concessions for further exploration, resource growth and establish a framework for potential development of the Laguna Salada Deposit in compliance with the stringent requirements of the current provincial mining law.
According to Dr. Richard Spencher, U3O8 Corp’s president and CEO:
This proposed joint venture with Chubut’s provincial mining company represents a key milestone on the path to positioning the Laguna Salada Deposit as a potentially low-cost, near-term uranium producer in a country that has a comprehensive and growing nuclear energy program. The principal points of our negotiations cover exploration of Petrominera’s mineral concessions onto which we believe our Laguna Salada Deposit extends, as well as laying down a framework under which the deposit could be developed on reasonable terms for both parties. With a preliminary economic assessment (“PEA”) expected later this year, Laguna Salada is well placed as one of the most advanced uranium projects in Argentina at a time when the country imports 100% of its nuclear fuel and is seeking domestic uranium supply.