Yes thats right, yesterdays announcement.alankew said:Moses what news.Do you mean yesterdays announcement,cant see a new one today
Northern Uranium Limited (“Northern” ASX: NTU) is pleased to announce the formation of a
strategic alliance with French nuclear group Areva NC, via its wholly owned subsidiaries,
Cogema Australia Pty Ltd and Afmeco Mining and Exploration Pty Ltd (together “Areva”).
Key Highlights of the Strategic Alliance are:
placement of 6 million new ordinary shares in the issued capital of Northern to Areva at
80 ¢ per share, providing Northern with additional funding of $4.8m.
binding strategic alliance agreement between Northern and Areva where Areva will:
− become operator of uranium exploration and development of the Gardiner-Tanami
Super Project (including Denison Range) (“Gardiner-Tanami”);
− provide requested technical services to support Northern’s exploration efforts in
Australia;
− be granted uranium marketing and offtake rights to all uranium ultimately mined by
Northern which is not otherwise the subject of third party ownership interests; and
− be invited to appoint a nominee to Northern’s Board of Directors.
The options will be issued at an issue price of 1 cent ($0.01) per option. These options will
expire on 31 December 2009 and be exercisable at 25 cents ($0.25) per option.
Details of the Proposed Options Rights Issue are set out in Section 10.3 of Northern’s IPO
Prospectus.
Northern further advises that it intends to lodge a prospectus for the Proposed Options Rights
Issue shortly. The record date for acceptances of the offer will be set according to ASX Listing
Rules requirements and in any event no earlier than 7 days after announcement of the
entitlement offer. Investors should note that only shareholders registered on the share register
of the Company at the record date will be entitled to participate in the proposed nonrenounceable
rights issue of options.
Areva pours money into uranium
* Robin Bromby
* February 15, 2007
THEY'RE coming to get our uranium sector.
This week alone, big French and Canadian money has continued to flood into explorers.
The latest development was a move yesterday by French nuclear giant Areva to triple its stake in Northern Territory explorer Northern Uranium, and - more tellingly - take operational control of the junior's main project.
This followed Monday's $23 million raising by Uranium Equities, with much of that sum coming from Canada. Even before this placement, Uranium Equities' largest shareholder was Toronto-listed Laramide Resources, which will be taking $3 million of the placement.
The total placement money will be used on exploring its various properties, including the Alligator River project in the Northern Territory - where the company is in joint venture with yet another Canadian company, Cameco.
Other uranium companies in which foreign groups have substantial equity include Summit Resources, Energy Metals and Paladin Resources, while OmegaCorp has just fallen to a takeover from another Canadian, Denison Mines.
Northern Uranium's main focus is its Gardiner-Tanami "super project", comprising 9950sqkm of tenements in the Granites-Tanami region straddling the Northern Territory-Western Australia border.
Areva, through its subsidiary Cogema, already holds 6.25 per cent of Northern Uranium and will now move to 18.5 per cent.
The French Government-owned Areva is the world leader in nuclear power and manufacturing plants in 40 countries. This week it won a $US5 billion ($6.4 billion) contract to build two nuclear reactors in China's Guangdong province.
Areva operates two mines in Niger, the world's sixth-largest uranium producer.
The deal with Northern Uranium involves Areva buying 6 million shares worth $4.8 million, and as well as taking over operational control of the flagship project, the French company will provide technical support for exploration in Australia and have the right to market uranium mined by Northern that is not already committed to other buyers.
The French will rank as the third-largest shareholder behind the two stakes of 21.7 per cent each held by Washington Resources and Polaris Metals, the two companies that combined their assets to float Northern Uranium. Canada's Mega Uranium also took a 6.25 per cent stake when the company was floated.
Areva is technical partner to Perth-based Berkeley Resources, which is exploring for uranium in Spain. The French can move to a 14 per cent stake by exercising options in Berkeley, but the junior is really only Australian in name now - most of its shares are held in Europe and Canada.
Canadians have been very active among Australian uranium plays in the past two years, taking big stakes in companies like Paladin and Summit.
Another Canadian company, SXC Uranium One, is developing the Honeymoon uranium mine in South Australia, while Mega Uranium has already taken over two Australian explorers (Hindmarsh Resources and Redport). In addition, Mega recently bought the Queensland uranium assets formerly owned by Glengarry Resources and entered a joint venture with West Australian explorer Aura Energy.
YOUNG_TRADER said:Hey Alan my Chq is yet to arrive in the mail? lol
What a rush so far,
I reckon it'll get to $1+ soon.
At $1 it's mkt cap will be $40m but it has 2 of the largest Canadian Uranium Majors as shareholders so a T/O offer would be always in the back,
Unfortunately I missed out on IPO as the shares that were being held aside by my brokers were gobbled up by the 2 Canadian U's, Good for NTU, bad for me, never bother to get on board as it opened up at 100% premium
Good luck Alan
Uranium explorers with NT interests are doing very well at present. I feel that I missed the boat with this one, but got on board the NRU boat instead. With Areva's move into NTU, this is clearly a major positive for it.alankew said:Up another 6c or so,looking at market depth(novice so please forgive my interpretation)seems to be little to hold it back with only a few sellers totalling about 90k of shares up to the $1.50 mark.
Areva Seeks Uranium in Australia to Tap Nuclear Boom (Update1)
By Angela Macdonald-Smith
Feb. 19 (Bloomberg) -- Areva SA, the world's biggest maker of nuclear power plants, plans to boost its uranium reserves by buying Australian deposits or securing alliances with producers there amid soaring demand for the metal used in atomic reactors.
Areva, already the world's third-biggest supplier of uranium, wants to double production by 2010, Philippe Portella, managing director of the French company's Australian uranium mining and exploration unit, said in an interview.
``If we want to increase our production very rapidly, acquisition is part of our strategy,'' said Adelaide-based Portella, who was previously Areva's chief geologist in Paris. ``It's not only Australia. It's worldwide.''
Areva, based in the French capital, aims to expand uranium production after prices doubled in 12 months, spurred by rising demand for electricity. Worldwide spending on nuclear power is forecast to exceed $200 billion by 2030, according to the Paris- based International Energy Agency.
The French company bid in December to develop the Angela uranium deposit in central Australia against 40 rival bidders including Cameco Corp. of Canada, the world's biggest uranium producer, Portella said in the interview on Feb. 15.
Uranium prices reached $75 a pound on Feb. 14, according to data from Metal Bulletin Plc, buoyed by delays to Cameco's Cigar Lake project in Canada, in which Areva has a stake.
Spurring Acquisitions
Rising prices have helped spur acquisitions in the industry, including SXR Uranium One Inc.'s agreement Feb. 12 to buy UrAsia Energy Ltd. for $3.1 billion. SXR wants to develop the Honeymoon mine in Australia and is seeking more deals. Last year Australia's Paladin Resources Ltd. bought smaller rival Valhalla Uranium Ltd. for A$174 million, while Canada's Denison Mines Inc. agreed to acquire Australia's OmegaCorp Ltd. for A$170 million.
Sinosteel Corp., China's second-biggest iron ore trader, is among companies that have applied to explore for uranium in the Northern Territory, the company said Feb. 13.
Areva, controlled by the French government, expects to more than triple worldwide spending on uranium exploration to about 50 million euros ($66 million) in 2008 from 15 million euros in 2005. Production should increase to 12,000 metric tons by 2010, Portella said.
``We want to be much more active, and Australia is part of this strategy to develop our exploration work,'' he said.
Northern Alliance
Areva last week formed an alliance with Northern Uranium Ltd., its first with an Australian explorer, where it will take over management of Northern's undeveloped Gardiner-Tanami Super project in Western Australia and the Northern Territory.
``We will try to have more relationships with Australian explorers and miners, we can assist some explorers to bring their assets to production,'' Portella said.
Australia holds 40 percent of the world's known uranium reserves, yet supplies just 23 percent of global demand because of bans on new mines in all but one of the eight states and territories. The Liberal-National coalition federal government is trying to get state governments, all controlled by the opposition Labor Party, to drop the ban.
Northern Territory is the only region of Australia where uranium mines can be developed as the federal government took over authority for approvals there in 2005. Labor's policy banning new mines is due to be reviewed in April, supported by South Australian Premier Mike Rann.
Staking a Claim
``Australia's got the largest share of reserves in the world and if you're a serious uranium company, and Australia's open for business again to some degree, then you need to at least stake a claim here,'' said Gavin Wendt, senior resources analyst at Fat Prophets Funds Management in Sydney. ``Overseas companies such as Areva seem to be banking on a change of heart by the authorities here, they're prepared to play a waiting game.''
South Australia and the Northern Territory are the two regions in Australia where political leaders are most supportive of uranium mining, said Kent Grey, Adelaide-based head of the uranium focus group at lawyers Minter Ellison.
Areva's most advanced project in Australia is the Koongarra deposit in the Northern Territory, which is stalled due to opposition from local indigenous groups. Koongarra is located near Energy Resources of Australia Ltd.'s Ranger uranium mine, the country's largest, The Aboriginal Northern Land Council vetoed development of Koongarra in 2000, resulting in a five-year moratorium on talks on development.
Aboriginal Groups
Areva plans to re-start talks this year with Aboriginal groups as it seeks agreement for a project. It will use examples from Canada in Niger, where local people are employed at mines, Portella said, declining to estimate the project cost.
``We will present our project, we will try to explain what we want to do,'' Portella said. ``This will be through relationships that we have to build with Aboriginal groups in this area, and definitively they will be involved in this mining development.''
Koongarra, found in 1970, holds about 14,500 tons of uranium oxide, the Melbourne-based Uranium Information Centre says on its Web site. It lies 3 kilometers (1.9 miles) from Nourlangie Rock, an Aboriginal rock art site and tourist area, and development is opposed by environmental groups including Greenpeace.
In the meantime, Areva is seeking more projects in Australia as its other deposits are more than 10 years away from possible development, Portella said.
Areva's proposal to the Northern Territory government to develop the Angela deposit, south of Alice Springs, envisages committing to a mine in three years, Portella said. Cameco, Energy Resources, Heathgate Resources, owner of Australia's operating Beverley mine, and Paladin are among rival bidders, he said.
``I am here with the experience that I have to lead a big push in our exploration activity here in Australia,'' Portella said. ``We hope we will have many more programs very soon.''
To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net .
Areva has advised Northern that it is its present intention to take up its full entitlement to the
proposed options issue. The New Shares issued to Areva will be entitled to participate in the
Proposed Options Rights Issue.
Areva has advised Northern that it has also entered into binding agreements with Washington
and Polaris to acquire some of their respective options when allotted under the Proposed
Options Rights Issue. Subject to Northern issuing the options, Washington and Polaris have
agreed to subscribe for their respective entitlements and have agreed, subject to completion of
the share placement to Areva, to sell respectively 4 million and 1 million options to Areva at
45 ¢ per option.
NTU's amazing run has continued with another good rise today. I feel that Areva's JV with them is behind most of this rise. May be this is the continuation of better things to come as more and more uranium explorers will be under the radar of large international companies.dubiousinfo said:While everyone has seen the SP of NTU double over the last few days, it seems that POL and WRL have been forgotten.
POL and WRL each hold around 25% of NTU. They each hold 10mil shares and at $1.60 for NTU thats $16mil to POL and WRL.
In addition NTU is due to announce a 1:2 non-renouncable rights offer for opies with an exercise price of 20c and issued at 1c.
POL and WRL will get 5mil opies with a value of $1.40 (based on a SP of $1.60) which is worth another $7mil to each of them.
So total value of the NTU holding for both companies after the rights ssue will be $23mil.
Even if the SP of NTU drops back to $1.00, That will still be $14mil in value.
I couldn't decide which company to go for. POL has the better prospects with its other tenements but WRL has a smaller Mkt Cap, so grabbed some of both.
dubiousinfo said:While everyone has seen the SP of NTU double over the last few days, it seems that POL and WRL have been forgotten.
POL and WRL each hold around 25% of NTU. They each hold 10mil shares and at $1.60 for NTU thats $16mil to POL and WRL.
In addition NTU is due to announce a 1:2 non-renouncable rights offer for opies with an exercise price of 20c and issued at 1c.
POL and WRL will get 5mil opies with a value of $1.40 (based on a SP of $1.60) which is worth another $7mil to each of them.
So total value of the NTU holding for both companies after the rights ssue will be $23mil.
Even if the SP of NTU drops back to $1.00, That will still be $14mil in value.
I couldn't decide which company to go for. POL has the better prospects with its other tenements but WRL has a smaller Mkt Cap, so grabbed some of both.
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