As has been confirmed by official announcements, Toro Energy Ltd. has decided to not exercise its option to take over the Napperby uranium project, which is in the Northern Territory, from Deep Yellow Ltd., a fellow uranium explorer, as the company feels that in its current state, it is now "economically viable".

Based on the present uranium price, the option purchase price has been estimated to be some $57 Million.

On Tuesday, Toro announced that its scoping study and follow-up on other development options have managed to reveal that the present economies of the project, on the basis of current and long-term uranium prices, did not warrant opting from Napperby's purchase under the terms it presently shares with Deep Yellow.

Also, the company said that no substantial amounts of extra uranium deposits with a good enough grade have been found in the area to support economies of the said project.

"As the project stands today, Toro's economic analysis of potential development scenarios indicated that the deposit was unlikely to exceed Toro's internal rate-of-return requirements under present and near-term uranium price scenarios", the company said.