People some of you need to look at the wider external market to understand why the price may not be going in the desired direction. U price down 6 % for starters (Uranium Falls 6% on Non-Traditional Seller, )...read on
Coupled with what is going on in Lybia with air raids on people, the markets are not going to go north in a hurry...BLR has a new lease of life but not today.
For that individual who decided to slag me for mentioning that it will hover around 8c needs to open their minds a little as im happy to provide justification. Quite tired of narrowminded people...
The shareprice has dramatically gone up since the 5c levels and part of that reason was mainly off the back of higher uranium prices and of course the great news re: Hansen...
THINGS TO BE DONE
1) JORC Compliant resource needs to be provided- possibly more resource drilling required coupled with grades ,size to confirm to market that we have 30+ million under new JORC guidelines ( inferred and measured resource)
2) Deal will require issued capital as outlined in agreement 3) Conditions need to be satisfied so we have 3 months to wait before all Due dilligence required is met (this is one of the reasons why i commented that it will hover in and around 8c range)things take time !
Key components of the definitive agreement with STB are:
4) Black Range has an exclusive, six-year option to acquire STB?s 51% mineral interest in the Hansen Uranium Deposit and immediate surrounds.
5)Once conditions precedent are satisfied, which is expected to occur within the next three months, Black Range shall pay STB US$1.0 million and issue STB US$2.5 million worth of shares in Black Range (based on Black Range?s 5-day VWAP for the period immediately preceding the issue of the shares). These shares will be issued in two tranches, 180 days apart.
6)Black Range shall undertake feasibility studies into the development of a commercial scale mining operation, evaluating all potential mining methods. To exercise its option to acquire STB?s mineral interest, 7) Black Range shall pay STB a further US$2.0 million and issue STB US$7.5 million worth of shares in Black Range. These shares would be issued in two tranches, 180 days apart.
8) If Black Range has not exercised its option to acquire STB?s mineral interest within 3 years of satisfaction of the conditions precedent, it shall have the right to extend its exclusive option for a further three years by paying STB $1.0 million and issuing STB a further $1.0 million worth of shares in Black Range. These shares would be issued in two tranches, 180 days apart.
9) If Black Range exercises its option to acquire STB?s mineral interest, Black Range shall also concurrently purchase the surface rights covering certain parcels of land that will be directly affected by a mining operation, under terms and conditions already agreed between STB and the surface owners. 10) If Black Range exercises its option to acquire STB?s mineral interest, STB will be entitled to a 1.5% royalty on production from its 51% interest in the Hansen Uranium Deposit. ................
Uranium Falls 6% on Non-Traditional Seller, TradeTech Says
February 20, 2011, 9:51 PM EST
By Yuriy Humber
Feb. 21 (Bloomberg) -- Uranium prices, which gained in every week of January, fell by 6 percent after the entry into the market of a non-traditional seller, according to TradeTech LLC.
Uranium-oxide concentrate for immediate delivery traded at $68.50 a pound in the seven days ended Feb. 18, down $4.25 from the week before, Denver-based pricing service TradeTech said in a Feb. 18 report. Ux Consulting Co. on Feb. 15 quoted the price at $72.25 a pound. UxC will update its price later today.
Nuclear-power utilities buy the bulk of their uranium for processing into fuel from mining companies, with the contracts mostly extending beyond a year. The immediate delivery, or spot market, allows trading for delivery within a year and includes financial investors. The U.S. government also periodically conducts auctions to reduce stocks.
The entry of a non-traditional seller into the market looking to place over 800,000 pounds of uranium oxide triggered the price slide, TradeTech said, without giving details on the seller. A lack of clarity and speculation about the true motivation for the sale provided momentum to the price decline.
There have been numerous reports of Chinese traders seeking to sell uranium on the spot market, UxC said Feb. 15.
Uranium prices, which reached a record high of $136 a pound in 2007 before falling to about $40, have risen since mid-2010 as China increased the use of nuclear power to curb emissions from burning coal. More than 150 new reactors are planned worldwide by 2030, with China planning 110 units, according to data compiled by the World Nuclear Association.
Seven transactions for 700,000 pounds of uranium were completed last week, TradeTech said. A non-U.S. producer entered the market seeking offers for 300,000 pounds of the material, the pricing service said.
--Editors: Clyde Russell, Jane Lee.
To contact the reporter on this story: Yuriy Humber in Tokyo at [email protected]
To contact the editor responsible for this story: Andrew Hobbs in Sydney at [email protected]
