Toro Energy's three new uranium tenements could add 4m pounds to resource base

Toro Energy (ASX: TOE) has finalize legal documentation with MPI Nickel Pty Ltd that formalises conditions for the purchase of three key mining tenements contiguous to the Centipede deposit at Toro’s advanced Wiluna Uranium Project in Western Australia the "Millipede" uranium tenements could add 4 million pounds uranium to the company's reserve base.

Toro is currently working on a JORC Resource update for the Wiluna Project and the company expects the three new tenements will comprise a portion of the revised consolidated resource when it is on the rampage at the end of this month.

On 17 February 2011 Toro announced it was acquire a project called Millipede from MPI. deliberation for the tenements includes a A$4.5 million cash payment to MPI and 2% Net Smelter Return (NSR) style royalty in favour of MPI on construction in excess of 4.5 million pounds (Mlb) uranium (U3O8) from the tenements.

State royalty plan hits Toro hopes for uranium project

The Adelaide-based junior said yesterday the ecological assessment on its Wiluna project would be open for public comment from Monday, which would build it the first of Western Australia's new uranium projects to achieve that important milestone.

But the news was overshadowed by Mines Minister Norman Moore announce the condition would initiate a 5 per cent royalty on uranium and magnetite iron ore -- a lower grade than the more widely known Pilbara ore.Mr Moore said it was predictable the state would receive about $10 million in 2013-14 and $28m in 2014-15 beginning uranium royalties.

"Uranium mining presents a significant occasion to further diversify WA's resources sector and also make a significant prospect contribution to the state's economyPremier Colin Barnett lifted the state's longstanding ban on uranium mining when he take office in 2008, which has seen increased interest within the sector.