Brinkley to sell SA, Sudan uranium exploration projects

17th August 2009 By: Mariaan Webb - Creamer Media Deputy Editor Online

JOHANNESBURG (miningweekly.com) – London-listed Brinkley Mining is looking to sell its interests in potential uranium exploration projects in South Africa and in Sudan, the investment company said on Monday.

In South Africa, Brinkley wants to sell its 49%-owned subsidiary Western Uranium’s Waterval prospect in the Karoo, saying that the small uranium resource would be “insufficient” to support a standalone operation.

It also plans to sell its stake in a potential uranium project in Southern Sudan, because of political and security risks and the early-stage nature of the project.

Brinkley has a provisional prospecting licence for the exploration of uranium and associated minerals over 5 000 km² and operates a joint venture with New Kush Exploration & Mining to explore the licence areas.

Results obtained from an airborne aeromagnetic and radiometric survey exploration work carried out in 2008 and from the field work programme carried out in April, showed that the project could host gold and uranium mineralisation, but Brinkley had decided that the project was too early stage and that it did not meet its exploration criteria.

Brinkley had already disposed of its interest in projects in Chad, the Democratic Republic of Congo and Nigeria, following a fall in uranium prices and a decline in the share prices of junior uranium companies on the Aim, repositioning itself as an investment company in natural resources.

In terms of the Aim rules, the investment company is required to make an acquisition by December 22, or its shares will be suspended from trading. Should it fail to implement its investment strategy by mid-2010, the admission to trading will be cancelled and a shareholders meeting will be called to consider investment opportunities, or to wind up the company.

Brinkley reported that it had identified and evaluated a number of potential acquisitions, but that none had fulfilled its investment criteria.

With a cash balance of £6,814-million, Brinkley said it was “well positioned” to take advantage of the current depressed market conditions and that it was “actively” pursuing a programme to identify and evaluate potential investment opportunities.

“While the short-term outlook for commodity projects remains difficult, the long-term outlook remains positive. The board believes this situation will produce a wide-range of acquisition opportunities for the company in the year ahead.”

The group reported a loss of about £0,66-million, which was attributable to administrative expenses and impairment charges.