DAR ES SALAAM, TANZANIA - More international firms are eying on uranium mining in Tanzania despite worries and concern from the Tanzania general public, international environmental NGOs and western capitals over mining effects that could come with this activities.
Last week, two mining firms, East Africa Resources Limited and Korea Resources Corporation (KORES) entered into US$3.5m investment pact that will see the development of Mkuju river project.
"This agreement will accelerate the immediate exploration programs and the acquisition of the mining license at Mkuju south," said Louis Coetzee, chairman and CEO of East Africa Resources, in a statement.
He said that KORES has agreed to invest $3.5m over two years for a 50 percent stake in the Mkuju South uranium project.
KORES will now commit to invest $2m to satisfy work obligations and expenditure requirements during an initial exploration program for Mkuju South, to be undertaken within the next 12 months. In return, it will receive a 28 percent stake in the project.
"KORES will then invest a further $1.5m to fund a second exploration program during the following 12 months. Its share of the project will then increase to 50%," said Coetzee.
In addition to its shareholding in Mkuju South, KORES will earn the right to buy up to 100 percent of the uranium subsequently produced at the project. The terms of those sales have yet to be agreed upon by KORES and East Africa resources. He said that the agreement with KORES is an important step in the Company's growth, due to the fact that it provides funds for immediate term exploration programs.
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