Canadians look to reshape Bullion into uranium force
JOHN PHACEAS
Perth explorer Bullion Minerals is poised for a dramatic overhaul as Canadian uranium interests eye a makeover to turn Bullion into one of Australia's leading uranium stocks.
Bullion was stuck in a trading halt yesterday, but is expected to unveil this morning a big capital injection from a major Canadian uranium group in return for a 10-15 per cent cornerstone stake in the low-key gold and uranium explorer.
The company is also expected to announce a board restructure that would put operational control in the hands of a uranium mine developer with extensive experience at the US-owned Beverley uranium mine in South Australia.
At the same time, Bullion is expected to finalise a spin-off of its promising gold projects near Higginsville, south of Kambalda, and unveil a similar spin-off of its nickel assets via an in-specie distribution to shareholders.
The unknown Canadian group's move comes just two days after Toronto-based Mega Uranium made a friendly $20 million bid for newly listed South Australian explorer Hindmarsh Resources in the first foreign takeover of a dedicated Australian uranium group in decades.
The Canadian invasion also comes amid booming prices for the nuclear fuel, which have trebled in three years as nuclear power is increasingly seen as a key weapon in the battle against global warming.
It also comes amid mounting calls for a major expansion of Australia's uranium mining industry as Asia-Pacific leaders meet in Sydney to discuss climate change.
Since joining the junior uranium boom last year, Bullion has progressively assembled a raft of promising projects in WA and the Northern Territory. In the NT, it swooped to peg 4000sqkm of ground at Mount Evelyn in West Arnhem Land after a moratorium preventing uranium mining expired. Previously held by Canada's Cameco Corp, the leases lie about 50km west of the big Ranger, Jabiluka, Koongarra and Coronation Hill deposits. Past exploration has already identified numerous sniffs of uranium in association with gold and platinum anomalism.
In WA, Bullion also holds 21 tenement applications over uranium targets, and has taken court action to verify its claim to a half stake in the big Mulga Rock uranium project, north east of Kalgoorlie, which is considered WA's third biggest uranium resource.
BLN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
