Monday, July 10, 2006

Jul 10 Uranium Stocks Update: sxr Uranium One (TSE:SXR)

SXR Uranium One made a tremendous move today, acquiring Rio Tinto's (NYSE:RTP) Sweetwater Uranium mill and associated Green Mountain uranium properties located in south-central Wyoming.

Uranium One will pay Rio Tinto $110-million on closing, of which $65-million will be payable in cash and $45-million will be paid by way of the issuance of about 6.1 million Uranium One common shares.

The uranium game is clearly heating up with the spate of recent announcements. We are now witnessing move and countermoves by some of the biggest uranium juniors in their efforts to fast-track and grow their respective companies and shares of the uranium market on a worldwide level. Paladin's (TSE:PDN) takeover bid of Valhalla and now SXR's foray into the American market from its South African stronghold are key signals.

For the multinational multibillion dollar Rio Tinto, this is a great deal for them as well, letting a junior company do most of the work fro them. It would be interesting to observe over the next year or so what or if they have more ambitious intentions towards SXR.TO as the mammoth Dominion mine gets ready to produce 4 milllion pounds of uranium oxide in the spring of 2007.
 

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