Shares in Forte Energy (ASX:FTE, LON:FTE) skyrocketed overnight as the uranium-focused company revealed it was finalising work programs, while noting some upbeat signals in the uranium market.
The stock was London's most wanted in early deals and shares raced up over 76% before dropping back to 0.135p - a rise of 58.82%.
It comes following the firm's acquisition of a half share in two Slovakian projects owned currently by European Uranium.
The firm also said in a third quarter update that it continues to focus on cost cutting and continues talks with other parties regarding further transactions.
Forte has paid C$500,000 cash for the 50% stakes in Ludovika Energy and Ludovika Mining, the EUU subsidiaries that hold the mineral licences for the Kuriskova and Novoveska Huta uranium projects.
It must spend a minimum C$350,000 a year on the properties over the next ten years to retain its interest.
Managing director of Forte Mark Reilly said of the latest quarter: "With revised funding arrangements in place, and having paid the CAD$500,000 cash consideration post-quarter-end for the Slovak joint venture, Forte is working closely with European Uranium to finalise works programmes and looks forward to updating the market in due course."
"The company notes some positive signals emerging in the uranium market recently, with the spot price for uranium currently above US$36 per pound after dropping to US$28 per pound earlier this year.
"Also, in Japan this week, the city assembly of Satsumasendai voted to restart reactors one and two at the Sendai nuclear power plant, which are expected to resume operations early in 2015. Forte remains confident in the compelling medium to long term supply/demand fundamentals, which indicate a sizeable supply shortfall in coming years."
The uranium sector has been plagued ever since the Fukishima nuclear disaster in Japan in 2011 but is now showing signs of life, according to some analysts.
US firm H.C. Wainwright reckons the market appears to have not only bottomed out at around $28.00 per pound in the spot market recently, but has also turned a corner.
Prices have been depressed ever since the earthquake and tsunami that struck Japan in 2011.
Many producers had to cut back on new projects and suspend existing ones until prices recover.
According to H.C Wainright, there are currently 94% more nuclear reactors under construction and planned than at the height of the uranium market in 2007.
