To fully understand why we are getting so little in the way of information and updates, I think we need look no further than Hindmarsh Resources. Within about six months of listing the prize was taken away for $20M (from memory). I am sure that like everyone else KH learns from her past experiences and there is no way that she will allow this to occur with Uran. That is part of the reason for the Discovery deal, in that it gives her a blocking stake in any potential takeover of Uran.
The deals will come and I am sure the reward will be significant for those that are prepared to see it though, but it will not be an easy ride and this is not an investment for the faint hearted. Large risk will hopefully be rewarded with huge gains in the months ahead, but you will need to be holding at the time of any annoucement. I know so many people who will buy into Uran once the situation becomes a little ‘clearer’; unfortunately for them once a large part of the risk is removed the rewards will be significantly less.
The downside is small from here, even if Uran was to come up with no U production and just picked up a couple of exploration leases in Australia or Africa, this is still not over valued in the present market. Remember we only get diluted with the Discovery deal IF Discovery comes up with a deposit that can be in production in a matter of months. Seems like a win for Uran, as we will either be +$5 and looking at producing uranium within six months or we will have nothing from the FSU and we get to keep our present share structure with the possibility of a couple of African deposits.
I hold and I will continue to hold a very significant number of both FPO and options.
Nice to meet some of the other HC posters at the GM last week, can’t wait for the next one!
DYOR as this a high risk and potentially a high reward investment.
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