Uvre shares climb on uranium expansion  

Shares in Uvre (ASX:UVA) rose over 14% yesterday (6 May 2024) after the junior critical minerals explorer revealed its plans to pick up ground in the uranium-prospective Frome Basin of South Australia.

The company has struck a cash and scrip deal to acquire all of the issued capital in Uranium SA, which has submitted two exploration licence applications covering three uranium prospects.

The news pushed shares up to an intra-day peak and close of $0.12.  

The applications neighbour Heathgate Resources 46.3-million-pound Beverley Mine, which has been in operation for over 20 years, and Boss Energy’s (ASX:BOE) Honeymoon Mine that produced its first drum of uranium in April, as previously reported

Uvre will pay $40,000 in cash and issue 2.5 million shares that will be escrowed for six months. 

The company – which has a market capitalisation of $3.5 million – will also issue 5 million performance rights, expiring three years from the date of issue, in two equal tranches. 

The first batch of performance rights will convert to ordinary shares on a one-for-one basis following the successful grant of the two exploration licences, expected in August 2024, and Uvre entering into any access agreements. 

The second lot of performance rights will vest on the completion of a maiden drilling program. 

Uvre also plans to undertake a $1.25 million capital raising, with firm commitments already received from a new strategic shareholder investor group and existing major shareholders, according to the company. 

The capital raising, which is being done at $0.10 per share – a 4.76% discount to the closing price on 1 May and the 10-day volume weighted average price – will boost the exploration coffers to $3.5 million. 

Managing Director Pete Woods says South Australia is Australia’s premier uranium mining jurisdiction, with the region hosting four operating mines – three of which neighbour the Frome Basin prospects under application. 

An airborne electromagnetics survey of the area has highlighted the potential for large-scale sandstone-hosted uranium deposits, Uvre says. 

“Uvre has a very healthy cash balance, tight capital structure and are motivated to advance the assets rapidly as the uranium resurgence and search for uranium assets across the globe intensifies,” Woods says. 

The company’s immediate priority following completion of the acquisition is executing access agreements, heritage surveys and clearance. 

Uvre also owns the 18.7 km2 East Canyon Uranium-Vanadium Project in Utah in the United States.

Write to Angela East at Mining.com.au 

Images: Uvre
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Written By Angela East
Managing Editor Angela East is an experienced business journalist and editor with over 15 years spent covering the resources and construction sectors and more recently working as a communications specialist handling media relations for junior resources companies.