UraMin seeks 36 million pounds

UraMin chief executive officer Ian Stalker said that the uranium firm has issued 38 million ordinary shares in a financing by BMO Capital Markets and Canaccord Adams at 95 pence per share to raise the 36 million pounds.

“The majority of these new funds will be devoted to early development of our Trekkopje Uranium project in Namibia including a trial mining operation and the early ordering of equipment for the project that have long lead times.

“This funding enhances our ability to bring Trekkopje to production in the shortest possible time frame,” Stalker said in a statement.

Should it come on stream, the Trekkopje project will be the first of UraMin’s development projects to come on stream, with the South African and Central African Republic (CAR) projects anticipated to start rolling in 2011.

UraMin also owns the Bakouma project in CAR and the Ryst Kuil project in South Africa and is currently awaiting the outcome of a licence application for the Karoo uranium deposits.

Trekkopje is also going to be Namibia’s third uranium mine after Rio Tinto’s Rossing Uranium and Langer Heinrich Uranium mine owed by Paladin Resources.

The Namibian project is UraMin’s most advanced project which offers near term production capability.

“At the rate at which the Trekkopje project is progressing, we anticipate that production at a yearly rate 3 million pounds of uranium will be achieved by the last quarter of 2008,” Stalker said recently.

UraMin anticipates to take advantage of the boom in uranium prices.

Industry experts say that the growing shortage of fossil-fuel based energy on a global scale is making uranium an increasingly attractive investment option for medium to long term investors despite the environmental lobby and the costs of waste disposal

UraMin was formed in 2005 and says it has a working capital of US$33 million and a market capitalization of US$330 million.

December 2006
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