Toro Energy In Talks With Asian Investor Groups
January 22 2012 - 7:45PM
Dow Jones News
Toro Energy Ltd. (TOE.AU) is holding talks with Asian investors
interested in its key Wiluna uranium project, the Australian mining
company said Monday.
Investor groups are seeking to enter a strategic partnership
with Toro through a cornerstone equity investment or joint venture
development of the Wiluna project, the Adelaide-based company said,
adding discussions had particularly advanced with two potential
investors.
Toro in a statement said the talks are incomplete and may, if
successful, take further time to complete.
The company said recent takeover offers in the mining industry,
including Rio Tinto PLC's (RIO) bid for Canadian uranium company
Hathor Exploration Ltd. and the offer by Chinese suitors for
London-listed Kalahari Minerals PLC (KAH.LN), "indicate the major
players in the uranium market remain optimistic regarding the
future of uranium."
The company said it expects a "significant level of corporate
activity" to continue this year as uranium companies capitalize on
the current weakness in the market following the disaster at
Japan's Fukushima nuclear power plant.
With the temporary closure of nuclear energy capacity in Japan,
as well as in Germany, current uranium production appears
sufficient to meet demand, Toro said. It said that is set to shift
in 2013, when a U.S. deal with Russia to convert decommissioned
nuclear warheads comes to an end. Fuel from the warheads accounts
for roughly 15% of current annual global uranium supplies.
Toro's flagship Wiluna project is located 30 kilometers
southeast of the town of Wiluna in central Western Australia state.
The company has said it expects first production of uranium in late
2013.
Toro, which has a market value of roughly A$91.7 million, also
is exploring elsewhere in Australia and in Namibia.
-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094;
robb.stewart@dowjones.com
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