VANCOUVER - Fronteer Gold has sold all the uranium assets of its subsidiary Aurora Energy Resources to Paladin Energy of Perth, Australia. In payment Fronteer will receive 52.1 million common shares of Paladin, making Fronteer at 6.7% the largest shareholder of Paladin. Value of the sale is $260.9 million.
The uranium assets in question include the Michelin project in the Central Mineral Belt of Labrador. There are six separate deposits with measured and indicated resources of 40.2 million tonnes averaging 0.09% U3O8 or 83.8 million lb of U3O8. There are also 29.1 million tonnes of inferred resources with a similar grade. A preliminary economic assessment for both an open pit and underground operation was completed in 2009.
The Michelin project is within the area covered by a three-year uranium mining moratorium imposed in March 2008. Aurora continued its exploration programs and initiated comprehensive community initiatives since then.
Paladin has other uranium projects in Africa and Australia. Visit the website at www.PaladinEnergy.com.au.