Critical One Energy (formerly Madison Metals) and Star Minerals have cancelled their earn-in and joint venture agreement over the Cobra Uranium Project in the Erongo Region.
Pennywort Investments, in which Madison holds an 85% shareholding interest, has the Cobra Project EPL 8531, which expires on October 17, 2025, and can be extended as per the tenement conditions for a further two-year period.
The agreement, first announced on September 19, 2024, would have seen Star Metals acquire up to 51% of EPL 8531 after spending US$3.95 million over three years, including progress payments.
Critical One Energy says Star Minerals did not meet its commitment after it requested in December 2024 an extension of the closing to early March 2025.
As a result, Critical One Energy says it continues to hold an 85% interest in the Cobra Uranium Project and a US$40,000 non-refundable deposit, a US$75,000 payment, and 5.3 million common shares of Star Minerals.
Star Minerals says they disagreed on terms on any revised terms of acquisition and extension of the remaining first payment of US$225,000, due on or before 8 March 2025.
Cobra Project’s foreign estimate of quantity and grade of mineralisation is 15.6 Mt at 260 ppm U3O8 for 9Mlb U3O8.
The foreign mineralisation estimates are taken from a November 2015 report completed by SRK Consulting (UK) Limited.
The Cobra Project permit holder used categories of mineralisation equivalent to mineral resources by the JORC Code 2012.
The resource report was not released publicly and did not include the measured and indicated estimates.
Star Minerals only received the drilling data, including the quality assurance and quality control, and not the resource estimation data.
A Namibian private company, Cobra Resources, held the tenements EPL 3524 and 3624 and completed most fieldwork in 2015.
The uranium mineralisation intersected in selected areas, and drilling was based primarily on reverse circulation drill holes drilled between January and July of 2015.
The current mineralisation database for Areas 1 and 3 of the Cobra Project consists of over 3,720 metres of reverse circulation drilling from 50 drill holes.
Cobra Resources engaged SRK in 2015, which derived an estimate of 15.6 Mt grading at 260 ppm U3O8 for a contained metal total of 9.0 Mlbs U3O8.
Most of this tonnage is within the Area 3 deposit, which also has a higher U3O8 grade than Area 1.
Area 3 comprises 14.65 Mt of inferred material at 270 ppm U3O8 for a contained metal total of 8.6Mlbs U3O8.
The smaller Area 1 deposit includes 0.96 Mt of inferred material at 200 U3O8 for a contained metal total of 0.4Mlbs U3O8.
Madison Metals acquired an 85% share in the project in 2022 and completed two areas of surface radiometric over and along Areas 1 and 3.
Madison further drilled targets along the strike from Area 3, referring to it as the Madison North target.
