Global Uranium has signed a binding sale and purchase agreement to divest its Enmore Gold Project to Koonenberry Gold.

The transaction will see Koonenberry issuing 35 million fully paid ordinary shares to Global Uranium.

It is contingent upon the approval of Koonenberry's shareholders at a general meeting scheduled for November 2024.

The Enmore Gold Project is situated within the New England Fold Belt in New South Wales, Australia.

This sale is in line with Global Uranium's focus on its growth strategy, particularly the development of its North American uranium portfolio.

By retaining an equity stake in Koonenberry, Global Uranium will maintain exposure to the gold sector while concentrating on its core uranium projects.

The company's North American uranium portfolio includes the 52.2-million-pound Tallahassee Uranium Project and the high-grade Maybell Uranium Project.

Global Uranium and Enrichment managing director Andrew Ferrier said: "We are pleased to have entered into an agreement with Koonenberry for our Enmore Gold Project.

“This deal not only creates value for both parties, but also enables Global Uranium to maintain a strategic focus on advancing our core uranium assets in North America, which have experienced significant and rapid progress over the past year.

“We remain committed to driving the development of our uranium portfolio, executing on our busy 12-month work programme and delivering long-term value to our shareholders by growing into a key supplier in uranium and nuclear energy supply chains.”

In June this year, Global Uranium finalised an agreement to acquire 100% ownership of various uranium properties in Wyoming, US.

The acquisition included a total of 5,040 acres, covering regions within the Gas Hills Uranium District.

As part of the asset purchase agreement with Foster Wilson, Global Uranium agreed to pay $70,000 (A$104,571) in cash and issue 400,000 common shares.