It wasn't confidential, so I don't see any issue with sharing it.
I sent the following email:
Dear Mr Glasier,
I am a current shareholder in BLR and was wondering if you could spare some time to give me some insight as to WUC's future plans and outlook once the takeover for BLR is complete.
I also have some specific questions:
1) Is it likely that WUC will need to obtain finance or have a Capital Raising in the short to medium term, so as to fund existing projects? If so, how likely / how easily would that be achieved?
2) Having had access to the ablation equipment, do you see a substantial value being able to be obtained from ablation technology in the medium to long term? And does it compliment WUC's existing deposits.
3) Is it likely that WUC would be the subject of any takeover or merger in the near future. Whilst I appreciate you can't predict that, I guess my question is more along the lines of, does WUC have the potential to find itself in a similar position to BLR, i.e. due to dwindling cash reserves and not the best market for raising funds, BLR was not able to be picky in respect to the current takeover offer.
Regards
And I received the following reply:
Dear Mr. xxxx,
Once we complete the acquisition of Black Range, we plan to continue the Black Range activities on the Hanson Taylor deposit, which includes a test mining of the bore hole technology, background data collection for a mine permit and other minor permits needed for mine startup.
A realistic production date for Hanson Taylor is mid to late 2018.
We expect to start mining the Sunday Complex mid-2016, with the ore either shipped to the White Mesa Mill under our current Toll Milling Agreement or stockpiled at the Pinon Ridge Mill site. With production from the Sunday properties, we expect cash flow either from the sale of the uranium/vanadium or if stockpiled at the Pinon Ridge mill site, from the advance sale of the uranium and vanadium.
Once the Black Range acquisition is complete, we will arrange for additional financing either through a capital raise, debt arrangement or a combination of both.
Because of our strong relationships with several major funds, we do not think it would be difficult to raise the funds we need. We are working on a budget and will have that available soon.
The Black Range acquisition will cost us over $1M, once we settle the substantial outstanding obligations of BLR.
We are now assembling the 5-Ton Ablation Unit and will start testing in two weeks. Once we are satisfied with the configuration of the unit, we will build two or three 20-ton per hour units for use at theSunday Mine Complex.
We believe the Ablation equipment will reduce production costs at all our uranium properties, which will enable us to cash flow even at today's uranium prices.
Because of our ability to raise capital and are very small number of shareholders, with the largest shareholders being myself and one large fund controlled by Russell Fryer, we have no intentions of being taken over. Once the share price reaches $20-$25 per share in several years, we may consider a merger if it is to the benefit of all of our shareholders.
BLR's situation was completely different than Western's when it became impossible to raise additional financing.
Please let me know if you have any further questions, as I would be happy to try and answer them.
George Glasier
970-864-2125
