Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed Alliance Resources surged on Thursday after the company revealed that its joint venture partner had made another play for full ownership of the Four Mile uranium mine, in South Australia.
Alliance on Thursday told shareholders that Quasar Resources had offered A$71.3-million to acquire Alliance’s share of the Four Mile project, including the Australian firm’s share of uranium oxide (U3O8) concentrates already produced at the mine.
In February, Alliance rejected a A$57.6-million offer from Quasar for its 25% interest in the project, as well as its share of U3O8 already produced.
At the time, the company said that internal and external valuations had estimated the value of its share of U3O8 concentrate mined to the end of December at about $20-million.
Alliance told shareholders this week that the company was seeking advice on the offer.
The Australian firm in November last year took a decision not to contribute to capital expenditure at the Four Mile mine during 2015, after Quasar passed the project budget without support from Alliance. As a result, Alliance would have no outgoing association with the project until January next year, and its interest in the project would be reduced from 25% to around 15% by the end of this year.
The company’s shares were trading at 12c a share on Thursday, up from the previous day’s closing price of 8c a share.