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Domestic and International Uranium Ventures and LLCs

James F. Cress, Uranium Exploration and Development

At the Rocky Mountain Mineral Law Foundation's last Uranium Special Institute in 1976, Hal Bloomenthal explored “The Evolution of the Uranium Joint Venture.”2 His listing of the common problems and characteristics of uranium ventures sketched the familiar outlines of what eight years later became the Foundation's “Form 5”:3

(1) A sharing of the fruits of the venture on a specified basis either as profits or in kind.

(2) A sharing of the risks of the venture on a specified or implicit basis.

(3) Contributions to the venture -- very often, but not universally, primarily properties by one party and contributions in the form of cash by the other. After a designated stage is reached both parties may be obligated to contribute cash.

(4) The management structure -- one of the parties typically being vested with authority to carry on operations and the other party participating within limitations varying, at one extreme, from the right to dictate, to merely the right to be consulted.

(5) Planning for and funding exploration, development and production.

(6) Disposition of the product -- ore or concentrates.

(7) The timing and scope of activities -- particularly, the timing for placing properties into production.4

These basic features of a uranium venture have not changed, and are embodied in Form 5 and its more rece