URANIUM Kazakhstan

Some old info from 'Growth Investor'

New uranium group eyes AIM
29/09/2005
UrAsia Energy, a nascent Kazakhstan-focused Canadian uranium counter, could target AIM if it raises £170 million in Toronto.

Currently in the throes of creation through a reverse takeover deal between Toronto Venture Exchange-quoted exploration minnow Signature Resources and British Virgin Islands-based UrAsia Energy (BVI), the company has a memorandum of understanding to take a 70 per cent stake in the potentially rich Kharassan uranium project in south central Kazakhstan. With uranium quoted around $31 a lb, this stake would cost nearly £40 million, half in shares and half in cash, plus £13.5 million when commercial production starts and a 12.5 per cent royalty on reserves above 55,000 tonnes of uranium as from 2008.

Kazatomprom, the central Asian republic's state-owned uranium company, owns 70 per cent of Kharassan. The acquisition is scheduled for completion 'on or about' tomorrow, subject to due diligence.

UrAsia has another memorandum of understanding with Kazatomprom to buy 70 per cent of another uranium operation in Kazakhstan, the Betpak Dala Joint Venture, for £190 million, two-thirds cash and one-third shares. The joint venture owns two fairly new projects, one of which produced a reported 1.7 million lbs of uranium last year.

Ian Telfer, president and chief executive officer of major gold producer Goldcorp, is chairman-designate of UrAsia, with a board including Philip Shirvington, ex-boss of Australian uranium concern Energy Resources and broker Frank Giustra. With other projects in Kazakhstan and elsewhere, UrAsia has some £30 million of working capital, mostly set aside for Kharassan and Betpak Delgta.

Canadian-owned Canaccord Capital Europe heads a syndicate which has agreed to seek £170 million at between £1 and 125p (against Signature's current 15p Toronto Ventures quote) for UrAsia in a brokered private placement. If all goes well, industry sources believe a move to AIM will be the logical next step.

Robert Tyerman