Mining moving up

25 May 2005

Energy Metals has signed an option agreement with Quincy Energy to acquire a majority interest in the company’s Aurora Uranium Property, consisting of 18 lode claims covering 146ha.

To acquire the 51% stake in the site, located in Oregon, USA, Energy Metals will pay $25,000 and will spend a further $2 million on exploration over four years.

In other mining news, Novastar Resources has found the potential for vast reserves of recoverable thorium in Australia. The company has announced plans to commence drilling to explore six additional anomalies within the property. Specific commencement dates will be forthcoming.

Elsewhere, the Swedish government has granted Canadian and Toronto-based mining company Continental Precious Minerals permission to explore for possible uranium deposits in northern Sweden. The company will investigate bedrock for three years in the province of Jamtland & Lapland, in the country’s far north. If the company is successful, a decision on whether they can mine uranium will be decided – separately – by Stockholm.

Meanwhile, Uranium Participation Corp (UPC) has closed its initial public offering, following the sale of 18 million units at C$5.00 ($3.95) each, and is listed on the Toronto Stock Exchange. UPC was set up to invest in and hold uranium oxide (U3O8) in anticipation of an increase in uranium price. The company’s strategy is to invest primarily in long-term holdings of U3O8 and not to actively speculate with regard to short-term changes in uranium prices.

The company said it would invest at least 85% of the gross proceeds of the offering in U3O8. Denison Mines is managing UPC’s activities, including any purchase and sale of U3O8. A number of proposals totalling 1.85 million pounds U3O8 at an average price of $27.87 per pound have been accepted.

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