5th Sep 2007 07:00
Albidon Limited05 September 2007 Level 1 62 Colin St West Perth 6005ALBIDON LTD Western Australia ARBN 107 288 755 Tel: +61 8 9211 4600 Fax: +61 8 9211 4699 Email: [email protected] ASX Code: ALB AIM Code: ALD 5 September 2007 Market release via electronic lodgement http://www.rns-pdf.londonstockexchange.com/rns/3189d_-2007-9-5.pdf URANIUM JOINT VENTURE UPDATE HIGHLIGHTS: • Albidon has finalised a joint venture agreement with African Energy Resources Limited ("African Energy") covering the Chirundu and Kariba Valley uranium projects in Zambia (see Diagram 1). • The Chirundu Project includes the Njame Uranium Deposit and the recently discovered Gwabe Uranium Prospect. • African Energy has expended AUD1 million on the Chirundu Project and has thereby earned an initial equity interest of 30% in the property, with the right to earn up to a 70% interest by completion of a Pre-Feasibility Study. • African Energy is continuing an aggressive exploration programme in the region, including sampling and drilling at the nearby Kariba Valley Project. Background African Energy is exploring for uranium on a number of Albidon's mineraltenements in Zambia under an Exploration Cooperation Agreement ("ECA") InJanuary 2007, African Energy provided notice to Albidon of its intention to earnan equity interest in two Target Areas within the ECA, namely the ChirunduProject and the Kariba Valley Project (see diagram 1 in the hyperlink above).Albidon and African Energy have now formed a joint venture for the purpose ofexploring and developing uranium, coal and coalbed methane resources withinthese two Target Areas. Under the terms of the joint venture, African Energy may earn a 30% interest ineach Target Area by sole funding at least AUD1 million exploration on eachTarget Area and a further 40%, to a total 70% interest, on sole funding of aPre-Feasibility Study on resources identified within the Target Area. African Energy has recently completed AUD1 million of expenditure in respect ofthe Chirundu Project, and has thereby earned an initial 30% interest atChirundu. African Energy is continuing an extensive exploration programme on theChirundu Project, in addition to ongoing sampling and drilling on the KaribaValley Project to the south (see diagram 1 in the hyperlink above). If you have any queries please contact the Chief Financial Officer, Nicholas Dayor the Managing Director, Dale Rogers on +61 8 9211 4600 or [email protected]. Albidon's nominated adviser is RFC Corporate Finance Ltd, contact Stephen Allen +61 8 94802500. Additional information may also be viewed on Albidon's website atwww.albidon.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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