Vancouver – Fronteer Development Group (FRG-T, FRG-X) and partner Altius Minerals (ALS-V) plan to spin off the privately held Aurora Energy Resources, focused on Labrador uranium, through an initial public offering (IPO).
By taking Aurora public, the duo will create a pure uranium exploration company. The IPO, being underwritten by Sprott Securities and GMP Securities, is expected to raise about $25 million.
Aurora, currently held 57% by Fronteer (also operator) and 43% by Altius, was formed in early-2003 to hold the pair’s Central Mineral Belt projects in coastal Labrador.
The flagship project in Aurora’s portfolio is the Michelin uranium deposit where a new resource estimate was recently tabled, essentially updating the historical estimate. Engineers Roscoe Postle Associates reviewed a measured and indicated resource of almost 9 million tonnes grading 0.113% U3O8 (containing 22.2 million pounds of U3O8) occurring from surface to about 250 metres depth. An additional 4.1 million tonnes of inferred resource grading 0.148% U3O8 was calculated in deeper portions of the deposit (to about 700 metres), based on seven widely spaced drill holes.
In addition to Michelin, Aurora’s uranium portfolio also includes the Nash, Inda and Rainbow deposits, all of which contain historic resources, and a couple of new discoveries.
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