Okapi Resources is officially in the uranium game, having finalised the acquisition of Tallahassee Resources and its suite of large, high grade US projects.

Okapi (ASX:OKR) announced its shift into US uranium last month with acquisition of Tallahassee, the owner of the Tallahassee uranium project in Colorado where a JORC 2004 resource indicates there is 26 million pounds of uranium oxide at a grade of 540 parts per million lying in wait.

The project also has significant exploration upside, and its acquisition comes at a time when the overarching uranium narrative is improving on the back of nuclear’s seemingly essential role in providing essential baseload power in a green energy future.

As the price of the commodity approaches five-year highs, Okapi has set off on high impact fieldwork programs. It has also added geologist Ben Vallerine as a technical director, bringing considerable US uranium experience to its board.

Vallerine spent six years as US exploration manager for uranium focused Black Range Minerals, and more recently worked as exploration manager at Caspin Resources (ASX:CPN).

Executive director David Nour said on the back of the latest developments the company intended to become a new leader in North American carbon-free nuclear energy.

“This acquisition is truly transformational for Okapi and underpins our new strategy to become one of the most prominent uranium developers in North America,” he said.

“We believe that the global push towards clean energy as a way of lowering carbon emissions will significantly increase global demand for uranium for the foreseeable future.

“Okapi is well placed to take advantage of this once in a generation macro-economic shift.”

Okapi’s deal for Tallahassee also includes an option to acquire 100% of the Rattler uranium project, including the historical high-grade Rattlesnake open pit mine, in north-eastern Utah.

Okapi said its strategy was to capitalise on the bullish outlook for the uranium sector by rapidly building its north American assets through accretive acquisitions and successful exploration.

Fieldwork underway

A site visit has already taken place at Tallahassee as part of planning towards an initial drilling program in the coming months.

Okapi expected to embark on a drilling program of around 10,000m with a view to expand and improve confidence in the existing resource base and acquire samples to be used for initial metallurgical testwork.

The results of this will dictate follow up steps, but initial conceptual mine design work may then be undertaken to determine the most appropriate work programs to follow.

Okapi has also identified opportunities to acquire additional mineral rights nearby its currently held project, and intends to explore these.

The company said it would look to further expand the resource base at Tallahassee by either discovering previously underexplored property, or through the acquisition of properties containing known mineralisation and, in some cases, historic resources.

This would enhance the economics of developing a standalone mining operation.

Cash in the bank

Okapi’s cash situation is strong, with $6.0 million worth of cash and cash equivalents at its disposal now the assets are in hand.

The company underwent a placement to raise $2.84 million before costs in July, with directors Nour, Leonard Math and Peretz Schapiro subscribing for $200,000, $50,000 and $60,000 worth of securities respectively. Skin in the game.




This article was developed in collaboration with Okapi Resources, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.