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Uranium Resources

  • BY: Andrew Hore |
  • POSTED: 30/10/2009 |

Uranium Resources is buying out the joint venture partner in its Tanzanian assets.

Uranium Resources is paying A$2.5m in cash and A$400,000 in shares to Indago Resources for this assets. This is conditional on Uranium Resources raising at least £1.6m before the end of the year.

The deal will give Uranium Resources 100% ownership of the Mtonya licence, which is near to Mantra Resources’ Mkuju River project where there is a resource of 35.9m lb U308.

At the beginning of 2009, Rio Tinto was granted an option to explore for coal on some of Uranium Resources’ southern Tanzania licence areas. Uranium Resources says this venture “has been progressing well”.

The agreement lasts for 12 months and covers nearly 3,000 square kilometres of exploration licence area. Rio Tinto has the right to earn a 51% interest by funding $7m in exploration spending following any farm-in agreement. It can earn another 29% by completing a pre-feasibility study.

At 2p a share, Uranium Resources is valued at £5.82m. A £1.6m placing would require a significant increase in share capital.

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