UEX boosts funds for uranium hunt

Vancouver — UEX (UEX-T) has raised $4.25 million in flow-through financing, which, in addition to $5 million raised in April, puts the company’s bank account at more than $11 million. The funds will be used to explore and develop the Athabasca Basin uranium projects in northern Saskatchewan.

Earlier this year, the company signed an agreement to acquire a 49% interest in eight of Cogema Resources‘ uranium projects in the western Athabasca Basin. In return, UEX must spend $30 million on exploration over 11 years.

UEX is preparing to explore all its Athabasca projects. Specific plans call for delineation drilling on the Anne and Colette deposits, part of the Shea Creek project.

Situated near the Cluff Lake mine, Shea Creek was subjected to 159 drill holes from 1992 to 2000, most of which intersected uranium mineralization.

World uranium prices continue to set multi-decade highs as demand for power generation soars. The last spot price, in May, was US$17.85 per lb. U3O8.

UEX was formed in 2002 by Pioneer Metals (PSM-T) and Cameco (CCO-T) in order to explore uranium deposits in the Athabasca Basin. Pioneer transferred all its uranium projects to UEX for 46.5 million shares, which were redistributed to shareholders. Cameco transferred its advanced-stage Hidden Bay project in exchange for 31 million shares, making it the largest stakeholder in the company.

This latest financing by UEX was priced at 75 per share. Shares have been trading in the range of 60-65. The company has 132.6 million shares outstanding.