Star Minerals (ASX:SMS) has officially dipped on its plans to pick up a stake of a uranium project in Namibia after ongoing talks surrounding a first tranche payment with Canada’s Madison Metals fell through.

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But perhaps the Namibia deal wasn’t ever too flash to begin with.

Star was looking at earning up to 51% of the Namibia-based Cobra Uranium Project (CUP) after spending less than $6.3 million based on ‘foreign estimates’ of a reserve of some nine million pounds of uranium.

Those estimates were heavily cautious in the Aussie exploration company’s late September 2024 announcement first flagging the deal.

(“The estimates of the quantity and grade of mineralisation for the Cobra Project referred to in this announcement are “foreign estimates” within the meaning of the ASX listing rules and are not reported in accordance with the JORC Code,” Star wrote at the time.)

But more of a giveaway was possibly that Star could have picked up a majority stake in Cobra at all for less than $7 million.

Even considering uranium prices have continued to slide from 2024 bull run prices, that’s a pretty cheap earn-in. Especially given Star noted in September the 297sq.km project had potential for further expansion of the resource.

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In between the lines, it looks like Star could have just avoided buying a lemon – especially given grades in the 660ppm range (albeit at depths <100m).

Either that, or Star is simply strapped for cash – or using that as an excuse.

“The parties previously agreed to extend the date for full payment of the cash component of the “First Payment” to on or before March 8,” Star wrote Wednesday.

“The company and Madison Metals did not come to terms on any revised terms of acquisition and extension of the remaining First Payment… The agreement has therefore been terminated and the company will not be proceeding with the acquisition of any interest in the Cobra Uranium Project in Namibia.”

SMS last traded at 3cps.

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