West Perth-based uranium explorer Uran Ltd has raised $2 million through a share placement to fund feasibility studies of Ukraine and Czech uranium assets.
West Perth-based uranium explorer Uran Ltd has raised $2 million through a share placement to fund feasibility studies of Ukraine and Czech uranium assets.
The company has also announced it has formally submitted a proposal to acquire the Czech Republic's only operational uranium mine.
The Czech government had been planning to close the mine and is currently reviewing that decision.
It is required to make a decision on the future of the mine by 30 June 2007, however the decision may be made before this date.
The full text of a company announcement is pasted below
Following its recent announcement regarding discussions to acquire an interest in the Rozna underground uranium mine in the Czech Republic, Uran Ltd advises that it has submitted a proposal to DIAMO, the state enterprise responsible for mining at Rozna. Uran was requested by DIAMO in January to submit the proposal by 20 February 2007.
DIAMO is expected to make a submission in February to Government recommending either continued operation or closure of the mine. The Government is required to make a decision on the future of the mine by 30 June 2007, however the decision may be made before this date.
The mine was previously scheduled to close in 2008 following a decision made in 2005 due to low uranium prices at the time and limited reserves because of a lack of funds for exploration and reserve definition.
The Prime Minister of the Czech Republic, Mr Topolanek, stated recently in Parliament: "We are considering extending the mining of uranium in the Czech Republic, the basis for this extension will be given by the Ministries, they have until 30 June 2007. The Government will decide on the extension."
In response to a question from the CSSD [the major Opposition party] regarding preservation of employment should the Australians enter into mining, Mr Topolanek said: "That may be one of the conditions of privatisation." He stated that, at that stage, they had not received a concrete proposal.
The Czech Republic is the world's 12th largest producer of uranium, with all production coming from the Rozna underground mine.
Rozna is the only operating uranium mine in Europe, and has operated continuously since 1957. Uran considers that there is significant potential to extend the current mine-life through drilling. In addition, while mining and processing operations at Rozna are very well managed and maintained, the Company also considers that there is potential to increase production and profitability through the introduction of new technology and the implementation of a plant upgrade.
As a result of its discussions with DIAMO in November 2006, Uran carried out an inspection and preliminary review of the mine and processing plant. In January 2007 the Company advised the Ministry and DIAMO that, following this review, it wished to proceed with discussions to participate in mining at Rozna.
Uran advises that there is no certainty that it will be successful in acquiring an interest in Rozna.
Placement Raises $2,025,000
Uran is pleased to advise that it has successfully raised $2,025,000 through the placement of 2,250,000 shares at $0.90 per share to Australian and overseas institutional and sophisticated investor clients of Foster Stockbroking Pty Ltd pursuant to Section 708 of the Corporations Act.
The company now has $3,000,000 in cash, which will be used to carry out feasibility studies of advanced uranium assets in the Ukraine, where it has reached agreement with two State agencies to jointly carry out feasibility studies of two sedimentary-hosted uranium deposits, and possibly the Czech Republic. Uran shareholders will have an opportunity to participate in the Share Purchase Plan announced on 2 February 2007.
