HomeEnergy MineralsUranium One obtains US$100 million for expansion

Uranium One obtains US$100 million for expansion

Aerial view of
Uranium One’s Dominion
processing plant
Vancouver, Canada — MININGREVIEW.COM — 03 July 2008 – Uranium One Incorporated – a Canadian-based uranium production company with a primary listing on the Toronto Stock Exchange and a secondary listing on the JSE – has secured a US$100 million (R800 million) revolving credit facility which can be used for general corporate purposes, including capital expenditure and acquisitions.

A news release issued here confirmed that the credit line had been secured with the Bank of Montreal and The Bank of Nova Scotia. The facility had a two-year term, and could be extended for a further year with lender consent.

The release added that, in addition to the funds available under the facility, the company’s current consolidated cash position was approximately US$145 million (R1.1 billion).

Last month, Uranium One received a certificate of registration from the South African National

Nuclear Regulator to commence exploration drilling on a portion of its shallow Dominion Reefs (Ottosdal) extensions in the North-west province of South Africa. A drilling campaign to test these extensions is scheduled to commence in Q3 of 2008.

The company news release went on to reveal that, in line with the timing for deliveries under existing uranium sales contracts, the company’s attributable sales volume of U3O8 during Q2 of 2008 totaled 685 000 lbs – an increase of 180% over the 244 300 lbs sold in Q2 of 2007, and an increase of 142% over the 283 300 lbs sold in Q1 of 2008.

The company added that attributable production at its Kazakhstan project is expected to reach 3.6 million lbs of yellowcake yearly when the operation reaches full capacity.