UPDATE 2.40pm: Toro Energy has signed a farm-in and joint venture agreement with French uranium and nuclear power giant AREVA in the Northern Territory.
The agreement covers a 2292sqkm tenement package in the Wiso Basin, southwest of Tennant Creek.
"Toro believes that its relatively unexplored Wiso Basin tenement package is ideally placed for exploring for a sandstone-hosted uranium mineralising system of a size and scale not unlike those found in Kazakhstan, where six of the world's top 15 producing uranium mines are currently in operation," the company said in a statement.
Toro's managing director Dr Vanessa Guthrie said the company was excited to have AREVA participate in a substantial exploration portfolio at a time when few companies were actively exploring for uranium in Australia.
"We look forward to adding value to our NT exploration targets through a long and beneficial relationship with one of the world's most respected uranium groups," she said.
Under the terms of the agreement, AREVA will spend $500,000 within two years of to earn a 51 per cent interest in the joint venture properties.
Upon reaching 51 per cent, AREVA will then have the option to spend another $1.5 million over four years for a further 29 per cent interest for a total 80 per cent stake.
Drilling is expected to begin in the first half of 2015.
Toro shares closed steady at 9.1 cents.