Western Prospector refuels treasury

Vancouver — Riding the uranium wave, Western Prospector Group (WNP-V) has arranged a $21-million financing to recharge its treasury as it advances work on the Saddle Hills project in northeastern Mongolia.

The company has lined up National Bank Financial and Haywood Securities as leads for an underwriting syndicate in the bought-deal, private-placement financing that would see 4 million shares issued at $5.20 apiece to raise gross proceeds of $21 million. The co-lead underwriters hold a “greenshoe option” to increase the offering by 500,000 shares.

Funds would be primarily earmarked for ongoing exploration at Saddle Hills, where Western Prospector is advancing its grid drill program en route to bringing the Russian C2 category resources in line with National Instrument 43-101. The company currently has three drill rigs active and has completed almost half of the 100 holes scheduled for this year.

Recent drill results include high-grade values from hole 5006 where a 7.1-metre intersection (from 270 metres below surface) returned 2.1% U3O8, including 4 metres of 3.7% U3O8 and a 1-metre intercept grading 8.1% U3O8.

Uranium mineralization at Saddle Hills occurs mainly as stratabound lenses in the lower part of a Mesozoic volcano-sedimentary sequence overlying a basement complex of late-Proterozoic to Paleozoic gneisses, schists and granites. Some additional structurally controlled mineralization occurs as steeply dipping to vertical zones, possibly connecting with the stratabound lenses. Uranium occurs as fracture coating yellow uranophane and fracture, vein and disseminated black pitchblende or coffinite.