Metals One (MET1) will increase its shareholding in NovaCore Exploration Inc, a private U.S.-based company advancing the large-scale Red Basin uranium project, from the current 30% to 35%.

Metals One will subscribe US$297,000 for the additional stake, bringing the total value of its investment in NovaCore to date to approximately US$1.45 million.  

Metals One's additional investment is designed to enable NovaCore to accelerate its plans to conduct a maiden drilling campaign at the large-scale Red Basin uranium project in Catron County, New Mexico, anticipated to commence in the fourth quarter of this year.

NovaCore holds approximately 15,000 acres in the Red Basin uranium district of New Mexico, where historical U.S. Department of Energy assessments and recent radiometric surveys suggest there is potential for 40 million pounds of U₃O₈. 

Recently, NovaCore's gamma spectrometry surveys have identified multiple uranium-rich zones. The area has road access, a known permitting regime, and favourable geology with structural and geophysical targets that remain largely undrilled below 400 feet.

NovaCore has completed land staking, radiometric and geophysical surveys, and is advancing permitting and environmental studies to support forthcoming drilling.   

NovaCore's board of directors includes Neil Herbert and Douglas Christopherson, both of whom played key roles in the management of AIM and TSX listed Uramin Inc. which was sold for US$2.5 billion.

"This investment in NovaCore's Red Basin project will deliver Metals One's first exposure to a high-impact uranium drilling campaign,” said Craig Moulton, chairman of Metals One. 

“We are gaining access to one of the most prospective yet underexplored uranium districts in the western U.S. with the potential to host future uranium deposits of national importance."

Metals One has also benefitted from the recent exercising of further cash warrants issued in conjunction with the fundraising it undertook in January.

 

View from Vox

 

It’s the exposure to the upcoming drilling campaign that really makes the NovaCore investment interesting. Uranium is coming right back into fashion, and if NovaCore can intercept something significant then the knock-on effects for Metals One will be highly beneficial. The truth machine will be the ultimate arbiter, but even so, now that the market is hotting up again, it’s good to see companies just getting on and drilling.