Madison secures strategic partnership with Star Minerals to advance Cobra Uranium Project in Namibia
Madison Metals Inc. is pleased to announce that Star Minerals Limited, a well managed Australian public company, has entered into a binding agreement with Madison to earn into Exclusive Prospecting Licence 8531 at Madison North near the world-renowned Rossing Uranium Mine in the Erongo Uranium Province, Namibia.
Under the terms of the agreement, Star Minerals has the opportunity to earn up to a 51% interest in the Cobra Uranium Project through staged cash payments, issuance of common shares to Madison, and performing exploration expenditures over a three-year period. If all earn-in options are exercised by Star Minerals, Madison would be entitled to cash, stock and work expenditures valued at approximately US$4.4 million. Additionally, Star Minerals will issue performance shares to Madison upon achieving specific exploration milestones. Upon successful completion of the earn-in, Madison and Star Minerals will form a joint venture to further explore and potentially develop the Cobra Uranium Project licence, with future contributions to be made on a pro-rata basis.
“We are excited to welcome Star Minerals as a partner in the development of the Cobra Uranium Project,” said Duane Parnham, Executive Chairman and CEO of Madison Metals. “This agreement strengthens Madison’s operational footprint in Namibia, as we now have active exploration efforts underway on two uranium projects in one of the world’s premier uranium mining jurisdictions. We believe this partnership will unlock significant value for both companies and our respective shareholders, and we look forward to advancing our mutual goal of driving sustainable uranium production to meet global energy demands.”
The Cobra Uranium Project is strategically located in Namibia, a leading global jurisdiction for uranium mining, known for its favorable regulatory environment and long history of supporting the uranium industry. This collaboration with Star Minerals aligns with Madison’s strategy of leveraging partnerships to accelerate exploration and development, while maintaining focus on creating long-term value for its shareholders.
In connection with the execution of the above-noted earn-in agreement, the Company is obligated to issue 450,000 common shares of Madison in two equal tranches to a non-arms-length individual, with the first half on execution and the remaining half upon Star Minerals completing its first earn-in milestone.
