Bullion gets $3m Canadian boost for uranium play

Gold explorer Bullion Minerals Ltd will become a pure uranium play, making the most of a $3 million cash injection from Canadian group Laramide Resources.

Cashing in on the demand for uranium stocks, the deal helps Bullion focus on uranium interests in Western Australia, Queensland and the Northern Territory.

As part of the plan, Bullion will change its name to Uranium Equities Ltd, spinning off its non-uranium assets to new float Chalice Gold Mines Ltd in line with previous market guidance.

The group has also assembled an impressive cast to direct the new focus, securing the services of Mark Chalmers, former senior vice president and general manager of Heathgate Resources (owner of the Beverley uranium mine) as managing director and former Perilya managing director Tim Clifton as executive chairman.

Mr Clifton will replace Tim Goyder, who will remain as a non-executive director.

A listed Canadian uranium company, Laramide will receive a share and warrants package for its cash.

Laramide's key asset is the Westmoreland copper-gold-uranium project in Queensland.

The placement will rank it alongside Resolute Mining Ltd as one of Uranium Equities' major shareholders.

Widely expected by the market, the announcement sent shares in Bullion 6.5 per cent higher, closing at 24.5 cents.