Australians to buy Tanganyika Uranium firm

An Australian company is set to take over a uranium exploration firm in Tanzania.

Austral Africa Resources has entered into a “binding terms sheet” with Tanganyika Uranium Corp.

It hopes to make offers to Tanganyika Uranium shareholders to acquire 100 per cent of the issued shares.

Tanganyika Uranium is a private, unlisted Canadian company.

It has an interest in uranium exploration in Tanzania.

The Australian company considers these assets to be complementary to its current ones in Africa.

The director of the Australian company, Lindsay Colless, said that pursuant to the binding terms sheet, they will offer 64 fully paid ordinary shares in the company for every one share held by shareholders.

This will result in the issue of up to 1,360,000,000 new fully paid ordinary shares in the company at a deemed issue price of $0.0025 cents per share.

The binding terms sheet is conditional — upon the satisfaction of a number of items.

These include the completion of mutual due diligence by both the company and Tanganyika Uranium.

The terms also include receiving acceptances for at least 95 per cent of the TUC shares on issue.

Each of the Tanganyika Uranium directors is to accept the offer for their respective shares, the company is to obtain all required approvals for the issue of the shares pursuant to the offer, and there is to be no claim against Tanganyika Uranium.

“The company will shortly make offers to individual shareholders. It is finalising the notice of meeting for the company’s shareholders to consider all necessary resolutions,” he said.

Tanganyika Uranium has tenure covering two regional zones in Tanzania.

The southern area known as Madaba-Mkuju covers 950 square kilometres and has targeted sandstone roll-front style uranium mineralisation.

The area located in the north of the country known as the “Eastern Rift” covers 2,420 square km and has targeted calcrete-style uranium.

Additional applications cover extensions to the above granted tenure.

Recently, Austrial Africa suspended processing operations at its Congolese copper smelting plant due to bad economic conditions.

It says it will continue to discuss the future of the plant with other parties with a view to possible sale, joint venture or other arrangements.

Uranium mineralisation was first identified in Tanzania in 1978-1982 by Uranerzbergbau GmbH (UEB).

The firm identified airborne radiometric anomalies during this period, leading to the discovery of two uranium deposits at Mkuju and Mdaba.

The Madaba-Mkuju property represents a sandstone-type uranium prospect within the same geological setting as the Mantra discovery.

It covers the Madaba uranium deposit identified by UEB.