Cameco exercises Golden Rule option

Saskatoon-based Cameco has given notice to Golden Rule Resources (TSE) that it will exercise its option to purchase the latter company’s 30% interest in the Fork Lake and Transom Lake gold projects, north of La Ronge, Sask.

Cameco has placed in escrow the requisite funds for the acquisition. All necessary regulatory approvals have also been received, the company said.

Golden Rule President Glen Harper said 10% of his company’s one-third interest in the joint venture had been subject to a 12% net profits royalty payable to Energy Reserves Canada. But, BHP Utah International, the successor to Energy Reserves, has recently elected to receive 12% of the net proceeds from the sale of its interest instead. As a result of this transaction, Golden Rule will acquire the royalty held previously by BHP Utah.

Last November, the combined interests in the Fork Lake and Transom Lake projects, held by Golden Rule, International Mahogany (TSE) and Goldsil Resources (VSE), were won by Cameco following a bidding competition. Cameco was the successful bidder for the other companies’ interests on the two gold properties, which are slated for development later this year.