Havilah Resources has signed binding agreements with HRE, transferring a portion of its uranium exploration assets in the Curnamona province of eastern South Australia.

This deal includes the Radium Hill, Billeroo, Lake Namba and Prospect Hill projects, with HRE gaining exploration and mining rights for uranium, rare earth elements and scandium.

The transaction includes Havilah receiving 38 million HRE shares, with half in a six-month escrow and the rest in a 12-month escrow.

Additionally, Havilah will receive 17.5 million unlisted HRE options, exercisable at $0.06 within three years.

HRE commits to spending A$3m ($2m) over three years on exploration, with at least A$1m in the first year.

Upon fulfilling these conditions, HRE can earn an 80% interest in the uranium exploration and mining rights and an 80% joint venture (JV) interest in any new discovery tenements.

Havilah will be free-carried for a 20% JV interest until a bankable feasibility study is completed.

Subsequently, Havilah may contribute or dilute to a 1.5% net smelter return royalty on uranium produced.

The completion of the transaction is subject to HRE's due diligence, shareholder approval for the share and option issues, and all necessary shareholder, regulatory, and third-party approvals.

Havilah technical director Dr Chris Giles said: “The agreements with HRE are a way for Havilah to monetise a portion of its remaining uranium assets, for which it is currently receiving neither inherent market recognition nor any value.

“The substantial shareholding in HRE provides Havilah with significant market exposure, while the free-carried project interest gives Havilah uranium project upside in the event of a successful uranium development.

“Havilah retains 100% ownership of its exploration licences and all other mineral rights (excluding rare earth elements and scandium on Radium Hill extensions), which HRE’s substantial exploration expenditure and field work programmes will help maintain in good standing.”