International Uranium to raise $4 million

Vancouver – With prices for uranium near 20-year highs, International Uranium (IUC-T) is raising $4 million by way of a private placement flow-through financing for exploration on its uranium projects in Canada.

The company agreed to sell up to one million flow through common shares at $4.00 per share for gross proceeds of $4 million. The company’s shares are currently trading at $3.60 on the TSX.

International Uranium has uranium exploration projects in the Athabasca region of Canada which have seen high grade drill intersections of late. The company also holds significant uranium deposits in Mongolia and uranium and vanadium deposits in the U.S. including a fully-permitted 2,000 ton per day uranium/vanadium mill near Blanding, Utah.

High grade results from step-out drilling were reported last week by the company’s partner JNR Resouces (JNN-V) at the Moore Lake project within the Athabasca Basin. Hole ML-55 intersected 5.14% U3O8 over 6.2 metres, including a 4.4-metre interval of 7.02% U3O8; and Hole ML-54 intersecting 3.5% U3O8 over 5.0 metres including a 2.5 metre interval of 6.52% U3O8. The first three holes of the summer drill program (ML-47 to -49) were step-outs drilled on the Maverick Zone. Intersections of 4.01% U3O8 over 4.7 metres including a 2.7 metre interval containing 6.74% U3O8; while ML-49 assayed 2.41% U3O8 over 4.5 metres, including a 2.5 metre interval containing 4.17% U3O8.

JNR Resources optioned its Moore Lake and Lazy Edward Bay uranium properties in the Athabasca Basin to International Uranium late last year. The company is working to acquire a 75% interest in each of these properties from JNR Resources. It is also earning a 75% interest in the Craford Lake property from Phelp’s Dodge (PD-N).

Last December the company raised CAD10 million in a bought deal financing to fund uranium exploration in the Athabasca Basin.

Headquartered in Vancouver, International Uranium, a Lundin Group company, also has a U.S. office in Denver, Colorado.