Recharge Metals to acquire Carter project in premier USA uranium hub

Recharge Metals (ASX: REC) has entered into a binding agreement to acquire a project in one of the USA’s leading uranium locations.

The company is raising $2.5 million to obtain 100% ownership of 26 square kilometres of mining claims within the prolific Powder River Basin, which together form the Carter uranium project.

Carter contains the majority of two significant high-grade historical resources including the Acadia deposit – where an estimated 3.7 million pounds of uranium has been identified – and the 1.4Mlb Mindy deposit.

Major exploration focus

Managing director Felicity Repacholi said that the area was intensely explored by numerous major mining and energy companies during the late 1970s and early 1980s.

“The project sits on the northern rim of the world-renowned Powder River Basin, a proven region for in-situ recovery uranium production, with six permitted processing plants located within 300km including Peninsula Energy (ASX: PEN).”

Ms Rapacholi said the Acadia and Mindy deposits immediately transform Recharge into an advanced uranium exploration company.

“Given the multiple roll fronts identified at the project, we see considerable potential to grow the resource base.”

Nuclear pivot

Ms Repacholi said the acquisition is boosted by the US government’s readoption of nuclear power and the entrance of large technology firms into the nuclear market.

“Year-to-date US uranium production has already more than tripled relative to last year’s total, driven mostly by operators based within the Powder River Basin.”

The company has added uranium geologist Ben Vallerine, who has six years of in-country experience exploring for uranium and also served as a director of US-focused uranium explorer Global Uranium and Enrichment.

“He brings a deep skill set that will be valuable in aiding Recharge in its goal to rapidly advance Carter.”

Exploration potential

Recharge has already undertaken a thorough review of historical drill data, with several targets identified that the company believes provide potential for the discovery of mineralised extensions and new zones of uranium mineralisation not incorporated in the historical resource estimate.

Historical data from the identified roll fronts within the Carter project indicate that the known resource areas are open along strike in one or both directions, offering potential for defining extensions of the mineralised zones.

The company also found areas of encouraging drill results not previously followed up, which could lead to further discoveries along the known roll fronts.

Capital raise

In consideration for the acquisition, Recharge has proposed an initial cash payment as reimbursement of costs incurred, capped at a maximum of $250,000.

It has also proposed the provision of $400,000 worth of shares.

To support the deal, the company has received firm commitments for a conditional share placement to raise $2.5 million.

Funds raised under the placement will be applied toward the cash consideration for the acquisition and Recharge’s exploration plans.