Boss Energy jumps after lifting stake in uranium miner
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More news: Shares in Boss Energy jumped 3.7% to $2.25 in early trading after the uranium miner said it will double its stake to 18.4% in dual-listed small cap Laramide Resources, which owns the Westmoreland uranium project in Queensland and the Churchrock-Crownpoint uranium project in New Mexico.
Boss said it has no current intention to acquire control or make a takeover offer for the company.
Boss Energy hikes stake in uranium developer Laramide Resources
The news: Uranium miner Boss Energy will double its stake in dual-listed small cap Laramide Resources, paying $15.5 million for an additional 9% interest, increasing its total shareholding to 18.4%.
The numbers: The outlay will comprise $3.9 million in cash and $11.7 million in scrip, at a price of 60 Canadian cents per share. Laramide, which is listed on the ASX and the Toronto Stock Exchange (TSX), last traded on the TSX at 54 Canadian cents, and last closed on the ASX at 61 cents.
The context: Boss said it is not in active discussions with Laramide and has no current intention to acquire control or make a takeover offer for the company.
Laramide owns the Westmoreland uranium project in Queensland, as well as the Churchrock-Crownpoint uranium project in New Mexico.
Boss noted that while Queensland currently has a moratorium on uranium mining, the company believes "it is prudent to secure exposure to the outstanding Westmoreland project asset for the price it has paid given the project's potential value should the ban be overturned."
The acquisition follows Boss' deal with ASX small cap Eclipse Metals, announced on Monday, to support the development of Eclipse's Liverpool uranium project in the Northern Territory.
What they said: "This investment represents an attractive opportunity to secure exposure to the significant exploration and development upside at Westmoreland for a relatively small cost," said Boss managing director Duncan Craib.
"...If the moratorium is overturned, Boss can apply its knowledge, experience and financial strength to the Westmoreland project."
The source: ASX
