DLA Phillips Fox advises on WA uranium project

DLA Phillips Fox has negotiated the agreements for the sale and joint venture of the Lake Maitland uranium resource in Western Australia.

Richard Homsany, Partner and Head of the Corporate and Commercial Advisory group in Perth and solicitor Katherine Williams have advised Mega Uranium Ltd on its sale of 35% of the Lake Maitland uranium resource for US$49 million and subsequent joint venture. The sale and joint venture will allow the project to advance to the production stage of an estimated 23.7 million pounds of uranium.

Mr Homsany and Ms Williams negotiated the agreements from the letter of intent through to the formal agreements. Due to the localities of the parties involved, negotiations took place in Australia and Japan over several months.

Mega Uranium Ltd sold 35% of the project and entered into a joint venture with the Japan Australia Uranium Resources Development Co. Ltd ((JAURD (90% across three shareholders)) and ITOCHU Corporation ((ITOCHU (10%)) to advance the development of the project. JAURD is a Japanese company mandated to acquire uranium resources in Australia on behalf of its three shareholders; The Kansai Electric Power Company (50%), Kyushu Electric Power Company (25%) and the Shikoku Electric Power Company (15%). ITOCHU is one of the world’s largest uranium trading houses.

Advising around the development of the Lake Maitland project follows on from the favourable uranium policy that was a result of the last state election in September 2008. The project is on track for production to commence in 2011.

Mr Homsany said: 'Mega Uranium will be one of the first companies, if not the first in WA to produce uranium. Being involved from a legal perspective in the process that moves this project towards production is extremely exciting, especially being at the forefront of a new Western Australian industry.  The future economic benefits of uranium mining to Western Australia, including the traditional land owners, will be great'.

For more information contact:

Richard Homsany
Partner
P: +61 (0)8 6467 6226
E: richard.homsany@dlaphillipsfox.com

Clare Buttner
Media Relations consultant
P: +61 (0)2 9286 8400
E: clare.buttner@dlaphillipsfox.com