Uranium news keeps streaming out of Utah.
These releases are just from the last couple of days. I would imagine that RSDS is using some of their financing money to advance their presence in the state, too.
Trigon Completes Agreement to Acquire White Canyon Uranium Mines
KELOWNA, BC, June 4 /CNW/ - Trigon Uranium Corp. ("Trigon" or "the
Company") (TSX-V:TEL) today announced that it has completed a definitive
agreement to acquire the mining rights to six Utah uranium mines ("the
Properties") by way of a Lease and Option Agreement with Shumway Brothers
Mining LLC and other owners of the properties ("the Lessors"). This
acquisition is the first step in Trigon's plan to establish a portfolio of
mines in the Colorado Plateau. Trigon believes significant uranium resources
can be developed by re-entering historical Colorado Plateau mines with the
intention of following previously defined ore zones and exploring land
contiguous to these mines.
Uranium One's $1.6B bid for Energy Metals creates U.S. uranium 'powerhouse' at 15:49 on June 4, 2007, EST.
TORONTO (.CP) - Sxr Uranium One Inc. (TSX:SXR) says its $1.6-billion deal to take over Energy Metals Corp. (TSX:EMC) will give it a production forecast to rival that of industry leader Cameco Corp. by 2013.
The arrangement - exchanging 1.15 shares of Uranium One for each Energy Metals share - continues a series of acquisitions for the South-Africa based company that will create a "powerhouse" in the United States uranium sector, said Neal Froneman, Uranium One's chief executive officer.
The company said Monday it expects to produce about 28 million pounds of uranium, used to fuel nuclear power plants, by 2013. Of that, about 25 per cent is expected to come from the company's new mine in South Africa, Dominion Reefs. Uranium One said Cameco's (TSX:CCO)production forecast is for more than 27 million pounds by 2011.
"This will enhance Uranium One's unrivalled production growth profile," Froneman said on a conference call with analysts Monday.
"This will go a long way toward our strategy of producing U.S. uranium for U.S. utilities."
Froneman said the U.S. has 103 nuclear facilities with an annual demand of about 50 million pounds per year. But domestic production is only about four million pounds per year, he said.
The deal's value, based on Uranium One's closing share price of $16.63 on Friday, represents a 28 per cent premium over the 20-day average before Energy Metals announced May 18 it was in talks for a sale.
Energy Metals stockholders will own 21 per cent of the combined enterprise, which Uranium One said will have a market capitalization of US$7.8 billion.
"This is a win-win for both groups of shareholders," Froneman said.
"This transaction results in a powerhouse in the United States uranium sector."
Froneman said the company is poised to profit from a shift in American attitudes towards nuclear power, as the country seeks to reduce its reliance on foreign energy sources.
"There are clear signs of a nuclear renaissance in the United States," he said.
The boards of both companies have approved the deal, Energy Metals shareholders are to vote on it in late July and it's expected to close in August.
Energy Metals has agreed to pay a break fee of C$55 million if another bidder prevails.
The deal follows a series of takeovers pursued by Uranium One as it seeks to position itself as a leading global uranium producer.
The company completed a $3.2-billion stock-swap takeover of uranium producer UrAsia Energy Ltd. in April, and also issued 6.6 million shares to U.S. Energy Corp. in exchange for the Shootaring Canyon uranium mill in Utah and a large package of land in Utah, Wyoming, Arizona and Colorado.
SOURCE: Utah Uranium Corp.
Jun 01, 2007 18:24 ET
Utah Uranium Announces Acquisition of Family Butte Mine Property
MOAB, UT--(Marketwire - June 1, 2007) - Utah Uranium Corp. (the "Company") (OTCBB: UTUC) is pleased to announce the acquisition of a 100% interest in approximately 112 mineral claims, consisting of 2,075 acres in the San Rafael Mining District, Utah, herein known as the "Family Butte" property (the "Property"). The Property is located in the San Rafael Swell area of East Central Utah.
The Property hosts numerous production portals from previous mining activities. Activities primarily occurred in the 1950s when Union Carbide performed extensive exploration aimed at providing additional feedstock to augment their Temple Mountain Mine production for their processing mill located in nearby Green River. Work included driving of numerous portals, and in excess of 80 drill holes (visually estimated) on the Butte top located behind these portals. Activities ceased on the closure of the milling facilities in Green River. More recently, exploration in the 1970s included drilling a parallel Butte top, also within the Family Butte Property, with numerous additional holes (estimated to be 80 - 100 drill holes).
The San Raphael Swell area was explored for uranium and vanadium from the mid-1950s until the early 1980s, when commodity prices caused the closure of many mining and exploration activities. Deposits in the area are typically found in meandering formations of historic channels in the Shinerup formation. In a recent Company inspection of the property, it was noted at numerous locations the presence of layered formations of fine grained sands in various thicknesses (prime host for uranium deposits) in addition to numerous samples of carbon "trash" material, copper and iron pyrite, all Uranium hosts and or indicators. Past production from this formation includes the million plus pounds produced from the Happy Jack, the Marquee and Atlas Minerals first mine, located 10 miles south of the Family Butte property.
Consideration for the acquisition of the Property consists of the payment in stages of a total of $418,000 and the issuance in stages of a total of 500,000 common shares of the Company of which 250,000 have been issued. The property vendors will also retain a net proceeds royalty, of 2% upon commencement of commercial production on the Property.
Utah Uranium Corporation is a Moab, Utah based junior exploration and development company focused on the acquisition of past producing uranium mines that can be brought back into production in the near term with low capital expenditure. All of the mines currently in the acquisition pipeline are within economic haul distances of the White Mesa Mill in Blanding, Utah owned by Dennison Mines. The white Mesa Uranium Mill is currently the only operating Uranium mill in the United States.
