Australian Rare Earths (AR3) has reached an option deal to acquire Valrico Resources, the holder of the rights to the Overland Uranium Project.

This move will see AR3 take over Exploration Licence applications ELA 2024/14 and 2024/15 in the Murray Basin, South Australia.

Under the agreed terms, AR3 will pay an option fee of A$50,000 ($32,986) within five days of the agreement.

Following the granting of exploration licences, a further payment of A$570,000 in cash and A$230,000 in AR3 shares will be made.

The share component equates to 2,041,855 ordinary shares, priced according to the 30-day volume-weighted average price prior to the agreement.

Upon finalising the transaction, AR3 will have a 100% interest in the two exploration licences.

The Overland Uranium Project covers around 1,981km² and is located 220km south-west of the Honeymoon Mine operated by Boss Energy.

The company noted that the geology of the project area is promising, targeting paleochannel sediments of the Renmark Group, similar to those hosting Boss Energy's uranium operations in the Eyre Formation.

AR3's acquisition reflects its commitment to the global energy transition, with uranium playing a crucial role in clean nuclear energy.

By leveraging its exploration expertise and the new landholding, the company is set to create substantial value for its shareholders.

AR3 CEO Travis Beinke said: “Today’s announcement signals a major step in expanding our exploration portfolio with projects strongly linked to the energy transition, providing AR3 opportunities for growth, flexibility and value creation.

“The option to acquire of the Overland Uranium Project in South Australia leverages the significant uranium experience and knowledge of the AR3 team.

“Incorporating uranium into our portfolio complements our early-stage rare earth exploration projects in North Queensland and exploration opportunities at our flagship multi-generational Koppamurra clay-hosted rare earth project in South Australia.”