Spey Resources Corp. entered into an option agreement with GeoXplor Corp. to fully acquire the Uravan vanadium-uranium project in Utah.

The company will pay GeoXplor US$310,000 cash in four annual installments and issue 3.5 million shares in five installments within four years.

Upon commercial production, Spey will have to make an additional payment of US$1 million either in cash or shares. Geoxplor will become entitled to a 2% net smelter return royalty once the acquisition is complete.

Spey has the right to purchase three-quarters of the royalty by paying US$1.5 million.

The company said Jan. 15 that it targeted the property for acquisition due to the increasing global demand for vanadium.