Summary & Comment: A Canadian firm buys up Tanzania uranium mining interest. With recent controversy over other Canadian mining interests, time will tell if this deal is ethical or not, and how it benefits the people of Tanzania.
VIPR Industries Inc. of Canada has completed its acquisition of the Manyoni Uranium property, which it described in a statement yesterday as highly prospective. The company said surveys have established strong potential for significant uranium mineralization at the property in Singida Region. Its president and chief executive officer Mike Gerstner said the property demonstrates excellent potential for significant uranium mineralization. "VIPR Industries is developing a growing portfolio of high quality, high value mineral prospects in Tanzania, a country with low political risk, mining-friendly investment policies and abundant mineral resources," he remarked.
VIPR acquired the property along with the Singida Gold Property as an asset purchase for 5,543,000 pre-split restricted shares from Kinti Group Inc., a Toronto, Ontario, and Tanzania-based private company. VIPR is leveraging Kinti Group's local area expertise, network of contacts and portfolio of quality assets.
Earlier this week, it announced the acquisition of the Singida property saying exploration drilling has identified an indicated resource of 543,000 ounces of gold valued at an estimated $500 million at current prices. Other companies actively exploring for uranium in Tanzania include Atomic Minerals Ltd. and Mantra Resources Ltd. Companies targeting uranium in Africa also include Deep Yellow Ltd and Denison Mines Corp., while Paladin Resources Ltd is developing its 3.3 million pound per annum Kayelekera Uranium Project in neighboring Malawi.
"Demand for uranium from accelerating nuclear power generation is outpacing mine production, creating a widening supply gap. We look forward to implementing our aggressive exploration plans for the Itigi Manyoni uranium prospect in order to meet this rising demand," Mr Gerstner notes in the statement. Demand for uranium, the fuel for nuclear reactors, is increasing dramatically. Nuclear power generation is expanding around the world as countries look to reliable, emissions-free nuclear power to manage rising energy demand and reduce greenhouse emissions.
As of April this year, 439 nuclear reactors in 31 countries were generating more than 16 per cent of the world's electricity supply. Worldwide, 35 new plants are under construction, 91 are planned, 228 are proposed, and many existing plants are expanding capacity, according to the World Nuclear Association.
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