Uranium Companies Rum Jungle, Toro Energy Join Efforts on Lake Mackay Project

Researched by Industrial Info Resources (Perth, Australia)--Rum Jungle Resources Limited (ASX:RUM) and Toro Energy Limited (ASX:TOE) recently announced that they have signed a binding heads of agreement (HoA) to explore the Lake Mackay potash resource, as well as any associated evaporite minerals.

The HoA is based on the Lake Mackay potash resource, which will give Rum Jungle the opportunity to farm into Toro's rights for potash and related evaporite minerals. The agreement is based only on this project and will not affect Toro Energy's other uranium exploration and mining projects. Lake Mackay is located on the border of Northern Territory and Western Australia.

Rum Jungle Resources is a junior explorer with a diversified portfolio of exploration projects that includes base metals, phosphate, uranium and potash. Its geographic exploration efforts consist of the Northern Territory and Queensland; with the HoA, Rum Jungle enters into the Western Australian frontier.

The company was founded on the discovery of uranium in the Northern Territory, as well as mining uranium, copper and lead throughout the 1950's. Industrial Info is currently tracking several Rum Jungle projects, including the Ammaroo aboveground phosphate mine and processing plant and the Karinga Creek Potash mine and processing plant, both of which are in the Northern Territory.

Toro Energy is a South Australian-based company that focuses on uranium exploration and mining. Industrial Info is tracking Toro Energy's uranium projects in the Western Australian resource-rich region of Wiluna, which is approximately 960 kilometres north of Perth, Western Australia. In April 2013, Toro Energy was granted an environmental approval for mining from the federal government.

Toro currently is in the tendering process to find major contractors to construct a mine and processing plant. Expected production at the facility is scheduled for late 2015.

The Rum Jungle farm in will evolve over the next three years, with the first year earning the company 51% interest. Following increased investment, the planned interest stake will extend to 80% in the second and third years. Upon reaching this milestone of ownership, Toro and Rum will negotiate the remaining 20% stake. Conditions apply on the agreement and it is subject to formalizing the joint venture and due diligence.

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