Vimy to take over Australian uranium project via Rio Tinto deal

Rio Tinto unit Rio Tinto Exploration Pty. Ltd. signed a binding term sheet to divest its 20.89% interest in the Wellington Range and King River joint venture at the King River-Wellington project in Australia's Northern Territory to Vimy Resources Ltd. in exchange for A$2 million of shares.

Vimy Resources will fully own project when the deal closes, subject to regulatory and other approvals, according to a March 10 statement.

Rio Tinto Exploration is entitled to further payments if Vimy Resources sells a stake in the project within three years of the deal closing at a price higher than what it paid, or if uranium prices exceed a certain threshold.