paladin buys frontier's u assets for $1.90/lb

Bannerman get's a nice mention:
http://business.financialpost.com/2010/12/17/paladin-fronteer-deal-expected-to-ignite-uranium-asset-race/

I confirmed the purchase on Aurora's website:
http://www.aurora-energy.ca/news/fronteer-gold-enters-agreement-sell-its-uranium-assets-paladin-energy

Frontier has a subsidiary company called Aurora energy which has uranium assets in Labrador, Canada.

http://www.aurora-energy.ca/project/overview

The thing to note here is that the Nunatsiavut Government issued a 3 year moratorium on Uranium mining in April of 2008.

Because of the moratorium on uranium mining in the area, it's not as though they could mine it if they wanted to, but they are not even at the PFS yet. They are in the very early stages but do have a Preliminary Economic Assesment on their website:
http://www.aurora-energy.ca/news/fronteer-reports-positive-preliminary-economic-assessment-michelin-uranium-project

The uranium assets include 84M lbs M&I @ 900PPM and 53M lbs inferred @ 800 PPM over a total of 6 deposit sites. They intend to use both underground and open pit mining. In an all-share deal that now sees Frontier the largest shareholder of Paladin @6.7%, Paladin has paid $1.90/lb for these assets.

Initial target of: 17 yr mine life. Cash costs of $28.57. Annual production = 5.7M lbs. $984M CAPEX.

Uranium mining approval/licensing in Canada can be quite tedious and can be very drawn out in the best of cases, especially when native people step in to object.

So Paladin has alot of leg work ahead of them on this one, not to mention it is still unclear if the government/native people will allow this to be mined:
http://www.aurora-energy.ca/acceptance-and-approval/overview

So if this project is worth $1.90/lb to Paladin at this stage of the game, with so many questions yet to be answered, surely to God BMN should be trading at least in this range given our advanced stage and given our host country is U mining friendly.

(212lbs*80%*$1.90/lb = $322M MC/232M shares = $1.39/share)

Surely to God...

PS. The $346M more in Capex required for that project (compared to Etango), is almost 3X our current Market Cap. hahahahaha