Star Minerals Limited (ASX: SMS) has announced the termination of its Earn-In and Exploration Rights Agreement with Madison Metals Inc. (Critical One Energy Inc.) concerning the Cobra Uranium Project in Namibia. The agreement, initially dated September 16, 2024, has been dissolved due to the failure of both parties to agree on revised terms for the acquisition and extension of the remaining First Payment, which amounted to US$225,000 and was due on or before March 8, 2025.
The initial agreement allowed Star Minerals to earn into the Namibian project, which boasts a significant foreign estimate of uranium mineralisation (as detailed in the ASX announcement dated September 19, 2024). A subsequent variation to the Earn-In and Exploration Rights Agreement was announced on December 17, 2024. However, despite these efforts, the companies could not reach a consensus regarding the outstanding payment. Consequently, Star Minerals will no longer be pursuing any interest in the Cobra Uranium Project. This decision marks a shift in Star Minerals’ strategic direction, as the Cobra Uranium Project represented a significant opportunity for the company to expand its uranium portfolio. Investors will be keen to see how Star Minerals redeploys the capital earmarked for this acquisition and what alternative opportunities the company will pursue in the resource sector. The termination highlights the challenges and risks associated with international resource acquisitions, particularly regarding payment terms and valuation disagreements.
