Azarga takes stake in Powertech

Azarga Resources, a Hong Kong-based private uranium investment firm founded by mining executive Andrew Molyneux, has bought 17.5% of Powertech Uranium’s (TSX: PWE; US-OTC: PWURF) outstanding shares and agreed to take a 60% stake in the junior’s Centennial project in Colorado.

Earlier this year Molyneux and his team at Azarga invested in Black Range Minerals (ASX: BLR; US-OTC: BLKMF), which is developing the Hansen-Taylor Ranch uranium deposit, also in Colorado. Azarga already owns an 80% operating interest in the Kyzyl Ompul uranium project, the largest known Soviet-era resource in Kyrgyzstan.

In a January press release announcing Azarga’s investment in Black Range, Molyneux said he was “bullish about the uranium renaissance to come” and forecasts that “it will start as early as 2013.”

In addition to strategic investments, the uranium and heavy rare earths development company says it brings marketing help to its investee companies, and can introduce them to its global network of investors.

Molyneux  has a track record in Asia. He worked as a specialist resources investment banker at Citigroup for 10 years, where he was managing director and head of metals and mining investment banking for the Asia-Pacific region. He then spent about four years as president and CEO of coal producer SouthGobi Resources (TSX: SGQ) from early 2009 until late 2012.

After SouthGobi, Molyneux joined Celsius Coal (ASX: CLA) as executive chairman of the Australian company, which is focused on developing coal mining operations in the Kyrgyz Republic. He also serves as non-executive director of Ivanhoe Energy (TSX: IE; NASDAQ: IVAN) and non-executive director of Mansfield Minerals (TSXV: MDR).

Powertech Uranium views Azarga’s investment as a vote of confidence in its two advanced-stage, in situ uranium projects in the U.S. The company is working on permitting and licensing applications for its Dewey-Burdock in situ uranium project in South Dakota, and its Centennial project in Colorado.

Dewey-Burdock forms part of the northwestern extension of the Edgemont uranium mining district, a former open-pit uranium area discovered in the 1950s on the southwest flank of the Black Hills. The Centennial project covers 7,100 acres of uranium mineral rights in Weld County, Colo.

At press time PowerTech Uranium was trading at 9¢ per share within a 52-week trading range of 5.5¢ to 17¢. The company has 141 million shares outstanding.