World Wide spins off subsid

The transfer of uranium assets not situated in Kazakstan to a newly formed subsidiary will enable World Wide Minerals (WWS-T) to pursue its lawsuit against the government of that central Asian nation.

The creation of WM Mining International (WMMI) will consolidate World Wide’s existing uranium sales agreements and projects in the United States and Mongolia. The subsidiary will also seek to finance the Dornod project, a suspended open-pit uranium mine in Mongolia. WMMI is looking to produce up to 3 million lbs. of uranium concentrate per year from the project.

The assets transferred to WMMI retained their book value of US$6.3 million. WMMI assumed US$1.3 million in World Wide debt, and issued to its parent a US$1.7-million promissory note and 25% equity stake.

A private Denver, Colo.-based firm, WM Mining, owns 74% of WMMI. It was WM Mining that sold the Dornod project to World Wide.

According to World Wide, the restructuring will allow it to focus on its legal battle with Kazakstan over failed uranium ventures in the country. World Wide is suing the government, state-owned uranium company Kazatomprom and U.S.-based uranium-dealer Nukem for a total of US$220 million, alleging that the government’s cancellation of its management contracts and exploration projects is illegal.