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Black Range Minerals’ A$2.1M capital raising closes oversubscribed
Friday, December 21, 2012 by Angela Kean

Demonstrating strong shareholder support for Black Range and its Hansen/Taylor Ranch Uranium Project in the U.S., the company has raised A$2.3M in a recent capital raising that closed oversubscribed. This provides sufficient funding for the company to continue to advance its uranium project towards production. Demonstrating strong shareholder support for Black Range and its Hansen/Taylor Ranch Uranium Project in the U.S., the company has raised A$2.3M in a recent capital raising that closed oversubscribed. This provides sufficient funding for the company to continue to advance its uranium project towards production.

Black Range Minerals (ASX: BLR) has now raised the full A$2.1 million from its recent capital raising with directors accepting, in full, all applications for shortfall shares, plus an additional $226,170 in oversubscriptions.

Importantly, the company is now well-funded to continue to advance the wholly owned Hansen/Taylor Ranch Uranium Project, one of the largest uranium resources within the U.S., towards production.

The company’s directors previously reiterated their support for the raising, agreeing to not only apply for their full entitlements, but also partially underwrite the one for two non-renounceable rights issue for a minimum of $400,000.

Additionally, Black Range has successfully placed all remaining shortfall shares.

Further indicating the strong support for the company and its highly prospective Hansen/Taylor Ranch Uranium Project, the company also received oversubscriptions for about $226,170 of shortfall shares.

As a result Black Range will make a separate placement of 45.2 million shares at $0.005 each to the applicants for these oversubscriptions, under the company’s 15% capacity.


Hansen/Taylor Ranch

The Hansen/Taylor Ranch Project has an Indicated and Inferred JORC Resource of 69 million tonnes at 600 parts per million (0.06%) for 90.9 million pounds of uranium.

This represents a very large resource on a global basis, as well as a relatively high grade resource base.

The Hansen Deposit is the largest and most advanced of all the deposits within the project, with a resource of 28 million tonnes at 0.064% for 39.4 million pounds of uranium.

A Scoping Study, completed in the first half of 2012, indicated that an initial mining operation can potentially be developed at the Hansen Uranium Deposit at a capital cost of less than $80 million to produce around 2 million pounds of uranium per annum at an operating cost of about $30 per pound.

The $80 million capital expenditure is the lowest in the industry, even for in situ recovery (ISR).

Considerable progress has been made on plans to conduct further mine development evaluation work at the Hansen Uranium Deposit, including preparation to conduct onsite trials of underground borehole mining.

Black Range is targeting receipt of all permits required to conduct these trials in the second half of 2013.

The company is targeting the receipt of all mining permits by 2015 and the commencement of production in 2016.


Appointment

In other company news, Black Range has appointed Ian Cunningham as company secretary.

Cunningham replaces Nicholas Day.


Analysis

Black Range’s share price appears very low on a peer comparison basis at less than $0.10 per pound compared to the peer average of about $1.14 per pound.

The completion of the company’s raising oversubscribed in today’s market is an indicator of the strong shareholder support for the company and the Hansen/Taylor Ranch Project.

The global supply-demand outlook for uranium anticipates near-medium term appreciation in the uranium price.

The company’s share price historically closely correlated with the uranium price, providing excellent leverage to uranium price upside.

There are several factors that could be catalysts for rerating for Black Range including that the company could be producing uranium as early as the second half of 2013 by commercialising Ablation technology.