Monday, February 20, 2006

Feb 20 Uranium Stocks Update: Urasia Energy (CVE:UUU )

What has happened since my last Urasia update on Feb 5?

Well, the commodities market corrected and a steep correction it was. Uranium was not spared and many took hefty hits. Fortunately, it seems that the correction is over, although volatility will persist.

UUU has also had a rollercoaster ride, dipping to an intraday low of $2.38Cdn before rebounding in the last couple of days to close at $2.80Cdn today, and even touching $3.01 last Friday when over 9 million shares changed hands.

A rough ride to be sure, but some good news came out from Urasia today.

With respect to the announced financing disclosed on February 1, 2006,the Company and its financing syndicate, led by Canaccord Adams Ltd.,anticipates closing of the bought deal to occur on or about February 24, 2006. The proceeds will be used to accelerate the development of South Inkai, forpotential acquisitions and for working capital purposes.

So the financing that started at the beginning of this month is done by the end of this week. Momentum is beginning to ebb up on this uranium stock and I do not perceive too much more downside on this stock. It is producing uranium, it has the support of a Khazakhstan government wanting desperately to become a uranium supplying power, and it's got great people behind the company. Let's see what the rest of this year holds for Urasia.



 

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