BOE 3.02% $4.77 boss energy ltd

Base and precious metals developer Boss Resources (ASX:BOE) has...

  1. Base and precious metals developer Boss Resources (ASX:BOE) has propelled itself into the forefront of Australia’s small but prospective uranium space with the acquisition of a substantial Russia-owned project in South Australia.
     
    Boss has agreed to purchase the Honeymoon uranium project from Russia’s state-owned Uranium One Inc (TSE:UUU) for a compensation package worth more than A$10 million.
     
    The terms include an initial cash payment of $2.4 million, $4 million in promissory note issuing and a $2 million component payable in cash or shares.

    The operation is located 80 kilometres northwest of Broken Hill near the South Australia-New South Wales border in the Callabonna sub-basin, which also hosts Heathgate Resources’ producing Beverley uranium mine.

    The deal is expected to recast Boss as a leader in the Australian uranium sector as sentiment for the nuclear fuel improves on momentum in Asian reactor building.
     
    Honeymoon boasts 5.29 million tonnes of resources grading 0.14% uranium oxide for a holding of 7,530 tonnes of uranium oxide.  The inventory is considered amenable to in-situ leach (ISR) recovery, a process roundly described by analysts as the cheapest and most efficient uranium production method.
     
    Honeymoon is one of only four fully permitted uranium projects in the country, but has never been fully commissioned.
     
    It was placed on care and maintenance in 2013 due to low prices for the nuclear fuel. Spot uranium has been fetching more than US$36 per pound this week, after trading in a range closer $30 per pound for much of last year.
     
    At the time of the operation being shuttered, Uranium One estimated it to have a carrying value of $67.8 million.
     
    Infrastructure at the Honeymoon site includes an 880,000-pound-per-annum solvent extraction plant, well fields, a 200-person mining camp and administration buildings.
     
    The power-connected site also hosts a fleet of vehicles and a runway for light planes.
     
    In order to fund closing of the acquisition, Boss will conduct a non-renounceable rights issue for existing shareholders on a basis of two new shares for every five shares held at an issue price of $0.015.
     
    The placement is expected to raise $3.3 million.
     
    The deal will deliver Boss with an 80% stake in Honeymoon, with the remaining 20% to be taken by a special purpose vehicle called Wattle Mining Pty. Ltd.

     

     

 
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