US-focused uranium and vanadium mining company Western Uranium Corporation is benefiting from a positive macroenvironment and price increases for both uranium and vanadium, which have increasingly led management to focus on strategic, operational and capital raising opportunities, the company noted in an update to shareholders this week.
Western closed private placements on July 27 and August 7, raising proceeds of about C$1.7-million and C$1.3-million, respectively.
Western president and CEO George Glasier noted that the company was pleased that it was able to raise almost C$3.6-million in new equity capital since May. “This funding allows Western to increasingly focus on operations and provides the necessary working capital to advance compelling strategic initiatives in vanadium, uranium and ablation.”
Meanwhile, Western noted that its proposed transaction with Battery Mineral Resources (BMR) regarding the formation of a vanadium development joint venture at the Sage mine, did not close by August 10, as previously anticipated.
The miner noted that in the two months since the agreement was signed, vanadium prices have become more compelling as the price has risen from over $14/lb to over $18/lb.
“Consequently, rather than pursuing a joint venture, BMR has provided notification of its desire to exercise the purchase option. Both parties are working toward the completion of a definitive agreement for which we have mutually targeted completion for August 31,” Western commented.
The company’s wholly-owned subsidiary Pinon Ridge Mining has, meanwhile, filed a surface sampling plan with the Colorado Division of Reclamation, Mining and Safety for the estimated 100 000 t stockpile at the Sunday Mine Complex. The stockpile will be sectioned into 40 ft square blocks and five samples taken within each section using XRF Analyzer technology.
It is anticipated that this radiometric survey will commence in early October.
Western intends to use the results of this sampling programme as a basis for ascertaining the economic value of undertaking a processing programme.