http://www.adelaidenow.com.au/busin...-uranium-project/story-fni6uma6-1226989591611
CHINESE state-owned company Sinosteel has struck an agreement to take full ownership of a uranium project in South Australia.
Pepinnini Minerals has sold its 40 per cent stake in the Crocker Well and Mt Victoria projects to Sinosteel Uranium SA for $2.3 million.
In 2007 Sinosteeel paid $28.5 million for 60 per cent of the projects in the state’s east.
There was also a commitment to pay $5 million towards further drilling and a bankable feasibility study on the resource and $6 million on exploration for other commodities.
When that deal was announced uranium stocks were running hot, and Pepinnini shares surged 24 per cent on the day to $1.74.
Currently they are trading at 1.9c, up .3c.
In Late 2009 the Pepinnini/Sinosteel joint venture put the project on hold, saying “preliminary financial modelling of the Crocker Well Uranium Project undertaken as part of the bankable feasibility study (BFS) for the development of a uranium mine indicates the Crocker Well project is not viable based on current market conditions.
“The analysis has determined the viability of the project is very sensitive with regard to the price of uranium and the American dollar exchange rate.
“Accordingly the joint venture alliance between Sinosteel Corporation and PepinNini Minerals has decided to delay the finalisation of a BFS until there is a substantial sustained increase in the price of uranium and a substantial sustained improvement in the American dollar.’’
The Crocker Well project has an indicated resource of 3750 tonnes of uranium oxide.
The deal is subject to a number of conditions which must be satisfied.
