West Perth-based gold miner Artemis Resources Ltd will acquire a 6 per cent stake in fellow West Perth company Contact Uranium Ltd for $2.5 million, the company has announced.
West Perth-based gold miner Artemis Resources Ltd will acquire a 6 per cent stake in fellow West Perth company Contact Uranium Ltd for $2.5 million, the company has announced.
Under the deal, Artemis will receive 5 million shares at 50 cents each through the placement, which the company says will provide its shareholders with a greater exposure to uranium assets.
Artemis announced last month it would sub underwrite up to $4 million of the minimum $8 million to be offered in the proposed Initial Public Offering of South Australia-focused Apollo Minerals Ltd.
The full text of an Artemis announcement is pasted below
Australian resources company Artemis Resources Limited ("Artemis" or "the Company") has acquired another significant equity stake in a fellow resources company, following the execution of a placement agreement with Contact Uranium Limited ("Contact") (ASX: CTS) that will see the Company take 5,000,000 shares (at A$0.50) and options in Contact, for a consideration of A$2.5m.
Following this transaction Artemis will hold approximately six per cent of Contact.
Contact Uranium Ltd is an Australian-based exploration company with a portfolio of exceptional uranium projects in Peru, Kyrgyzstan and Western Australia.
Contact's most advanced project is the shallow, high grade Corachapi uranium deposit in Peru, which has a JORC compliant Inferred Resource of 9.2 million lbs of U3O8 - with an in situ metal value in excess of A$1 billion. Contact recently announced exceptional results from radiometric surveys over its Peruvian licenses, identifying anomalies that demonstrate potential to significantly expand the resources at Corachapi and at its second Peruvian project, Kihitian.
During the third quarter of 2007 Contact anticipates commencing an extensive drilling program to enhance and increase this known mineralisation at the resource (refer Figure 1).
In the Kyrgyz Republic Contact's operating partner is drilling its Kamushanovskoe uranium project and has recorded significant anomalism - maximum value of 0.287% uranium over 0.5m.
This project is within 100km of the Kara Balta uranium mill and close to border of Kazakhstan, one of the worlds leading uranium-producing nations.
This is the second significant equity acquisition Artemis has made in the past month, with the Company also recently reaching an agreement with unlisted public company Apollo Minerals Limited (Apollo) to sub underwrite up to A$4,000,000 of the minimum A$8,000,000 to be offered in a proposed Initial Public Offering (IPO).
Artemis' Chairman Sevag Chalabian believes this latest transaction will provide the Company with further exposure to a range of uranium projects overseas, to the benefit of Artemis shareholders.
"We are extremely pleased to have taken a significant equity stake in a Contact Uranium, a company that is focused on uranium exploration outside Australia," said Mr Chalabian.
"Contact has a range of highly prospective uranium projects, all of which complement those of Apollo Minerals, which Artemis recently took an equity stake in, which is exploring for uranium and other metals in South Australia.
"Importantly, this transaction like the recent Apollo transaction is in line with Artemis' corporate objective of continuing to actively pursue opportunities to take equity in mineral resource projects and resource companies that have the potential to add value to Artemis shareholders.
"The Board is of the opinion that Contact, as an Australian resources company focussed on uranium in Peru and the Kyrgyz Republic will provide such potential."
