Newly listed uranium producer ranked third in the world

Vancouver After raising $504 million through a brokered private placement earlier this fall, UrAsia Energy (UUU-V) became the world’s third largest publicly traded uranium producer on November 8th when it opened for trading on the TSX Venture Exchange.

The company holds an effective 70% interest in the Betpak Dala joint venture, which owns a producing in-situ leach mine and holds several advanced development projects in south-central Kazakhstan. The mine’s annualized production puts UrAsia just ahead of Toronto-based Denison Mines (DEN-T), though well below the world’s largest publicly traded uranium producer, Cameco (CCO-T, CCJ-N).

Publicly traded uranium companies are rare entities, with only four existing in the world today. If privately held or state-owned uranium producers are added to the ranks, UrAsia would make the top-ten list, but just barely, at number nine or ten. But in terms of market capitalization, the company takes second place on the TSX after Cameco.

Formed through a mid-September ‘business combination’ with Signature Resources, UrAsia Energy has 419.5 million shares issued and outstanding, and some industry heavyweights on its board. Ian Telfer is non-executive chairman, while Frank Guistra and Robert Cross are directors. Phillip Shirvington is president and chief executive officer and Gordon Keep is chief financial officer and secretary.

UrAsia (through a predecessor company) acquired the 70% stake in the Betpak Dala joint venture for US$350 million and future bonus payments based on newly discovered uranium reserves. The company says its first priority is to expand production at the joint venture’s wholly owned Akdala mine, which has been operating since 2003. The expansion will be funded using the mine’s internal cash flow.

At the same time, UrAsia plans to spend $75 million to bring the South Inkai and Kharassan development projects into production as quickly as possible. The company says all three projects will be carried out through “strategic partnerships” with local partner Kazatomprom, a state-owned company responsible for mining, importing and exporting uranium.

The Akdala mine has proven reserves of 6.4 million pounds U₃O₈ and probable reserves of 21.4 million pounds U₃O₈ contained within indicated resources of 30.6 million pounds U₃O₈ and inferred resources of 15.6 million pounds U₃O₈.

The South Inkai development project hosts inferred resources of 36.6 million pounds U₃O₈.Through a subsidiary, UrAsia holds a 30% interest in the Kharassan uranium project. Two local partners, including Kazatomprom, hold the balance. This project has indicated resources of 13.8 million pounds U₃O₈ and inferred resources of 75.4 million pounds U₃O₈.