Heavy Rare Earths (ASX:HRE) agreed to acquire three prospective uranium projects: Radium Hill, Lake Namba-Billeroo, and Prospect Hill in South Australia from Havilah Resources (ASX:HAV).

Heavy Rare Earths will earn an initial 80% interest in the uranium rights on three projects by issuing 38 million ordinary shares, granting 17.5 million unlisted options, and spending AU$3 million over three years, including at least AU$1 million in the first year, on exploration and development activities, according to Monday filings on the Australian bourse.

After earning the 80% interest in the uranium rights, Havilah Resources will be free-carried until the completion of a bankable feasibility study. After this, Havilah Resources can opt to contribute its pro-rata share of all future expenditures or dilute to a 1.5% net smelter royalty.

The deal is subject to Heavy Rare Earths raising at least AU$2.2 million in capital, among others.

The company is set to raise AU$1.2 million via the placing of 40 million shares at AU$0.03 apiece and is proposing an entitlement offer, also priced at AU$0.03 apiece, to raise AU$1 million.

The acquisition is slated for completion on Dec. 11.

Shares of Heavy Rare Earths rose nearly 6% in recent trade. Shares of Havilah Resources rose nearly 5%.