15/09/2008 - 10:01

Uranium stocks surge on Libs-Nats deal

15/09/2008 - 10:01

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Shares in uranium stocks with assets in Western Australia have surged this morning as the prospect of a ban on mining the commodity comes to an end following the Nationals support of a minority Liberal state government.

Uranium stocks surge on Libs-Nats deal

Shares in uranium stocks with assets in Western Australia have surged this morning as the prospect of a ban on mining the commodity comes to an end following the Nationals support of a minority Liberal state government.

The future is brighter and the outlook clearer for uranium plays today as yellow cake fever hit investors this morning.

So far the biggest share price increase was from South Australian company Toro Energy Ltd, which jumped 33 per cent to 28.5 cents in morning trade.

The company, which holds three uranium projects in the state, today released an announcement welcoming the Nationals decision to support the Liberals.

Managing director Greg Hall said based on the stated policies of both parties, the result allowed Toro to plan work on enhancing its Wiluna uranium project, 40km west of the township of Wiluna in WA's north eastern goldfields.

"We can now focus on enhancing the resource, environmental, economics, health and technical analysis of Wiluna to ensure its project economics provide the right value for the company's shareholders and for potential development," Mr Hall said today in a statement.

"Our first priorities will include briefing the local communities and the new WA government to ensure an understanding of our plans, and address any concerns and needs."

Other stocks to make gains include Energy & Minerals Australia Ltd which holds the Mulga Rocks deposit, claimed to be the largest uranium deposit outside the control of the mining majors.

EMA's share price jumped 22 per cent to 55c.

A1 Minerals Ltd, which holds a uranium project near the Mulga Rocks deposit, also saw its share price gain 16 per cent to 11c.

Uranium Equities Ltd, which owns the Moorarie project, climbed 11 per cent to 15.5c while Desert Energy Ltd, which holds several uranium projects in the Gascoyne region, was up 8 per cent to 27c.

Uranio Ltd, which has interests in three WA uranium projects, climbed 24 per cent to 15.5c while uranium miner Paladin Energy Ltd, which has two projects in the state, was up 4 per cent to $4.90.

Northern Uranium Ltd was also up 5 per cent to 35.4c. The company holds the Gardiner-Tanami project in WA.


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