ASX-listed Eclipse Metals on Monday announced a binding option and earn-in agreement with fellow ASX-listed Boss Energy to advance exploration at the Liverpool uranium project, in the Alligator Rivers uranium field of West Arnhem Land, Northern Territory. 

Under the terms of the agreement, Boss would initially commit A$250 000 to exploration during a 12-month option period.

Following the exercise of the option, Boss had the right to earn up to an 80% interest in the project by providing up to A$8-million in exploration funding over a seven-year period. This funding would be divided into two stages, with Boss required to spend at least A$1.5-million on exploration before it can withdraw from the agreement. Upon earning an initial 49% interest in the project, Boss would have the option to increase its stake to 80%.

As part of the agreement, Eclipse and Boss would form an unincorporated joint venture to explore and develop the Liverpool project. Should Boss successfully earn in, it would have the option to purchase an additional 10% interest in the project from Eclipse, bringing its total interest to 90%, for A$50-million.

This partnership would enable Eclipse to focus on its rare earth assets in Greenland, while still retaining a presence in the Australian uranium sector. 

"Boss Energy as a uranium producer will accelerate our exploration efforts, bringing us closer to unlocking the full potential of this highly prospective region. This strategic alliance allows Eclipse to enhance shareholder value in this long-held asset while sharpening our focus on critical mineral opportunities. Our key projects in Greenland, with their rich rare earth and industrial mineral potential, and other Australian assets remain central to our mission of contributing to the global critical minerals supply chain," commented Eclipse Metals executive chairperson Carl Popal.

The Liverpool uranium project consists of five exploration licences – EL27584, ELA31065, ELA31770, ELA31771, and ELA31772 – covering a total area of 1 229 km². One of the notable prospects within the project is the Devil's Elbow, located within EL27584. Historical exploration at this site has yielded high-grade surface uranium assays, including results up to 5.8% uranium oxide, as well as significant gold and palladium mineralisation. Previous exploration programmes have focused on the Devil’s Elbow, Terrace, and Ferricrete uranium prospects, which are situated in areas defined by historical geochemical and radiometric anomalies. Unexplored ground south of the Ranger Fault will also be a focus of future exploration.

The Devil’s Elbow prospects bear a strong resemblance to the Jabiluka uranium and gold mine, located about 20 km to the north of the Ranger uranium mine and about 75 km west of the Devil’s Elbow. At Jabiluka, uranium and gold mineralisation occur in an altered section of the Cahill Formation, near reverse faulting structures similar to those found at Devil’s Elbow.