WCU - White Canyon Uranium

[gaps]

good anns out on options underwriting today. that will bring 23million to the WCU coffers.

agree that we will see major re rating of this new uranium producer come jan, with the tsx listing.

plenty of upside early next quarter, interesting play imo.

 

[YOUNG_TRADER]

so very quiet

flying under the radar

one announcement due soon will change all that

for those that follow and invest in Uranium well worth a look as this will be the next ASX listed Uranium producer

Sorry to gloat but I just love it when things fall into place like you forecast them to


and looks like its no longer under the radar alot of people starting to get to know about WCU know

 

[wanlad1]

First of many anns out expected over the next few weeks, you little producer you!

ASX ANNOUNCEMENT
21 DECEMBER 2009
FIRST ORE DELIVERED TO DENISONS WHITE MESA URANIUM MILL,
UTAH
US-focussed uranium producer White Canyon Uranium Limited (ASX: WCU) (White Canyon or the
Company) is pleased to announce that first ore has now been delivered to the White Mesa Mill
owned by Denison Mines Corp. (TSX: DML; NYSE AMEX: DNN).
This is another significant milestone for the Company which has progressed from uranium explorer
to become the first new producer of uranium in Utah, USA. This has occurred in just 22 months after
listing on the ASX. It is an extraordinary achievement, one which many companies take several years
to realise, and it is a tribute to the strength and dedication of our mining team led by Operations
Director Kelly Shumway. I expect 2010 will be a very good year for White Canyon now that
production is in place Managing Director Peter Batten said.
In October 2009 the Company announced that trucking of ore to Denisons White Mesa Mill, some
100 kilometres by road from the Daneros mine, would commence in December 2009 and that
proceeds from its sale of first ore to Denison were scheduled to be received in January 2010.
I am pleased to say that we are on track to receive first sale proceeds in January 2010 as planned

 

[wanlad1]

Once the options are gone WCU will take the next leg up.

- Development of the Daneros Mine
- Toll Mining Agreement and delivery of 2,000t to Denison’s White Mesa Mill (January 2010)
- Commence Toll stockpiling (January 2010)
- Ramp up of mining to 3,000t/month (February 2010)
- End of development stage and commencement of full scale production (March 2010)
- Reach target production of 4,500t/month (March 2010)
- Copper flotation and amenability tests (March 2010)
- Commence drilling to upgrade mineralisation to JORC compliant resource (April 2010)
6
- Finalise offtake agreement (August/September 2010)
- First toll treatment campaign (H1 2011)
- Deliver first product (July 2011)
- Commencement of drilling, exploration and studies on other projects
- Commence drilling at Daneros/Geitus (March/April 2010)
- Commence ISR amenability study on Yellow Cat (May 2010)
- Commence exploration at Lark Royal (May 2010)
- Work program is to be funded through the funds raised (~$A22m) pursuant to the
underwritten exercise of options that expire at the end of January 2010

 

[enigmatic]

I've been following this little Uranium specy currently a market cap of 22million.

They have been slowly accumulating land near there current mine, which they will be producing a small amount of uranium a year.

Recent sales agreement has seen a move from 8c to 14c over the last few days.
The potential is there for this little specy uranium, however it seems thats all it is for now potential.

Watching this one carefully.

 

[enigmatic]

Still no real interest in this New Uranium producer. has climbed to 20cents now and with Uranium exploding up to $US73/lb now no wonder its growing in price.
I have a feeling this one will only really start to shine once Profit figures come in and everyone realizes how low there P/E is.

Anyway keen watcher of this Uranium producer.
DYOR

 

[pixel]

Still no real interest in this New Uranium producer. has climbed to 20cents now and with Uranium exploding up to $US73/lb now no wonder its growing in price.
I have a feeling this one will only really start to shine once Profit figures come in and everyone realizes how low there P/E is.

Anyway keen watcher of this Uranium producer.
DYOR

Good company, enigmatic;
I've been swing-trading WCU a few times in recent months; since it's lifted to 20c, I'm now keeping a few for the long haul.



next resistance 33c and 44c

 

[enigmatic]

Continual uptrend for this one again today up 15% to 23cents. Not sure if this is solely due to the uranium price or the fact that people are becoming more aware of this little producer.
Just waiting for actual figures on the projects profit so i can do some actual fundamental analyst has been a little restrictive with sharing information about there operation and future outlook.

 

[enigmatic]

Not sure if anyone else follows this but looks like dension has made a cash bid at 24cents
which is 1cent higher then its current value.

I tend to think WCU is value is far greater then this due to there land holding in Utah and the simple fact they are the only company that has been given mining rights in this region for 30years.

Doesn't seem fair value so i can only assume the board is getting something from the deal

 

[tothemax6]

Not sure if anyone else follows this but looks like dension has made a cash bid at 24cents
which is 1cent higher then its current value.

I tend to think WCU is value is far greater then this due to there land holding in Utah and the simple fact they are the only company that has been given mining rights in this region for 30years.

Doesn't seem fair value so i can only assume the board is getting something from the deal

I follow, yes I'd say denison will be getting a good deal. Its bid is 4c higher than the price when the corresponding trading halt occurred, so I'm guessing the move up to 23c after the announcement is simply the market matching the anticipated future buy price.
I would agree definitely worth more, based on the value of the rate of ore processing they have scheduled and the grade of the ore. However if the directors are all in favor of just throwing in the towel when there is a bit of money on offer (based on the unanimous recommendation to shareholders to accept the deal), even when the company is worth more, perhaps the shareholders should just take the deal.

 

[pixel]

Interesting, to say the least, is the sweetener that was given to Ms Lulu Yu.
For her $2.5M "Convertible Note" she now received 23M new shares before the deal.
You do the maths. I reckon the entire deal stinks and ought to be rejected.

 

[enigmatic]

Oh and off course the Directors would agree its a good deal they were just issued 20million options at 15cents little bonus of 1.8million between them assuming the 24cent offer goes through.
If it goes higher the bonus is better offcourse but easy money.
The USA supply of Uranium will run short soon and the price has been on the rise no reason to jump ship yet.

Edit: Although i guess i should of looked at the Uranium price its had a bit of a correction over the last two weeks.

 

[tothemax6]

Probably one of my most boring purchases ever. Buy, then short while later a takeover bid is made, and trading of the stock grinds to a halt. When is it that this takeover is due to occur, so I can put the money somewhere more exciting - like in a sock .

 

[tothemax6]

OK I posted that, and then reactors in fukushima proceeded to explode, causing uranium stocks to be hammered. To be honest, there is something rather dark about that .

Definitely made the stock more interesting. I'd say if the stock remains at the current price (about 0.18), few people will reject the 0.24 offer .

 

[pixel]

Interesting, to say the least, is the sweetener that was given to Ms Lulu Yu.
For her $2.5M "Convertible Note" she now received 23M new shares before the deal.
You do the maths. I reckon the entire deal stinks and ought to be rejected.

Is it possible that the bidder fails to secure enough acceptances? Seeing that Denison keep mailing letters and extending the deadline, that seems increasingly possible.

Does anybody know where the threshold to compulsory acquisition lies? I understand that, once 90% of votes have agreed to sell, the last tenth will still receive the same consideration as everybody that accepted within the time period, except that they're forced to sell, whether they want to or not. That would mean, NOT accepting the offer won't disadvantage a holder.

And what would happen if they did NOT receive the required 90%? Will all acceptances be wound back? Or does the bidder simply end up with 70 or 80% of the stock without achieving full control?

I've googled "how does a takeover bid failing affect acceptances?", but couldn't get a helpful answer.

 

[skc]

Is it possible that the bidder fails to secure enough acceptances? Seeing that Denison keep mailing letters and extending the deadline, that seems increasingly possible.

Does anybody know where the threshold to compulsory acquisition lies? I understand that, once 90% of votes have agreed to sell, the last tenth will still receive the same consideration as everybody that accepted within the time period, except that they're forced to sell, whether they want to or not. That would mean, NOT accepting the offer won't disadvantage a holder.

And what would happen if they did NOT receive the required 90%? Will all acceptances be wound back? Or does the bidder simply end up with 70 or 80% of the stock without achieving full control?

I've googled "how does a takeover bid failing affect acceptances?", but couldn't get a helpful answer.

If 90% acceptance was the condition I believe the bidder can walk away, as one of the conditions is defeated. So all the acceptances are "wound back" as you put it.

Other scenarios include the bidder lowers the threshold to say 75%, and they hold what they have and may be come back with a mop up bid down the track. Or they can throw in a sweetener in hope of getting that final 15%...

In the uranium space it wouldn't surprise me if the bidder's gone cold feet. But I haven't followed WCU in detail so pure random speculation only.

 

[pixel]

If 90% acceptance was the condition I believe the bidder can walk away, as one of the conditions is defeated. So all the acceptances are "wound back" as you put it.

Other scenarios include the bidder lowers the threshold to say 75%, and they hold what they have and may be come back with a mop up bid down the track. Or they can throw in a sweetener in hope of getting that final 15%...

In the uranium space it wouldn't surprise me if the bidder's gone cold feet. But I haven't followed WCU in detail so pure random speculation only.

Thanks for that;
I did buy some at the recent dip, feeling I'm practically guaranteed 24c. But hoping for more - who wouldn't

 

[skc]

Thanks for that;
I did buy some at the recent dip, feeling I'm practically guaranteed 24c. But hoping for more - who wouldn't

Recent dip? If you bought some during the Japan earthquake then you are a brave man...:cowboy:

 

[pixel]

Recent dip? If you bought some during the Japan earthquake then you are a brave man...:cowboy:

WHat about the Japan quake? WCU is on the other side of the Earth. Sure, there was a knee-jerk reaction, but those are an opportunity more often than a risk.
I usually trade by the chart; Support at a strong Fibonacci level - in this case, 61.8% was even matched by an earlier resistance - is always worth a second look. Sure, risky it was: but not any longer once the blue arrow confirmed the swing change a few days later.



... and remember: I never put sheep stations into a single trade.

 

[skc]

WHat about the Japan quake? WCU is on the other side of the Earth. Sure, there was a knee-jerk reaction, but those are an opportunity more often than a risk.

Pixel. That was a geniue praise about you being a brave man to buy a uranium play after the Japan quake. (Although the best I could find was a cowboy emoticon which isn't what I was trying to say).

Let's hope the takeover offer won't lapse.