Virginia Energy Resources Inc (fka VEGYF)

[Anty_Jr]

Virginia Energy plans to raise $6m to advance uranium project in US

Uranium development and exploration company Virginia Energy Resources has announced a share placement offer to raise up to $6m for the development of its wholly-owned Coles Hill uranium project in US.

The Coles Hill project is located in south central Virginia and hosts 119.6 million tons of indicated resource at an average grade of 0.056% eU3O8 containing 133 million pounds of eU3O8.

The company as per the terms of the placement will offer 14,285,714 common shares at a price of $0.42 per share subjected to regulatory approval.

Subsequent to the announcement uranium producer Energy Fuels has agreed to acquire a 19.9% stake in Virginia Energy.

Energy Fuels CEO Stephen Antony noted that deposits hold significant technical and economic merit for the company.

"The US is currently the biggest consumer of uranium in the world, yet we import more than 90% of our supply requirements," Antony said.

Virginia Energy CEO Walter Coles further remarked that Energy Fuels will bring its technical expertise to the project.

"We are excited to have Energy Fuels as a partner and with their assistance we hope to eventually permit and build one of the safest and most productive new uranium mines in the world," added Coles.

Sprott Resource has also agreed to acquire a 20% stake with $1.2m in cash.

http://nuclearfuels.energy-business-review.com/news/virginia-energy-plans-to-raise-6m-to-advance-uranium-project-in-us-020113