Photo by: Bloomberg
PERTH (miningweekly.com) – Junior tin producer MGT Resources on Tuesday unveiled plans to pursue uranium investments to diversify its product offerings.
The ASX-listed company said in a statement to shareholders that the uranium mining industry offered a unique investment opportunity at present, and that, over time, it was expected to deliver significant value to investors as the global civil nuclear power industry grew.
As part of this shift, MGT had entered into an agreement with investment partner Auskong International Mining Investments to provide funding for MGT’s first uranium acquisition.
Under the terms of the agreement, MGT had issued Auskong one unsecured converting note with a face value of A$2-million, subject to shareholder and regulatory approval.
The note would be converted into MGT shares at a price of 3.3c a share, resulting in MGT issuing more than 60.6-million shares on or around June 23.
The A$2-million invested in MGT by Auskong would be used to purchase about 16.9-million shares in ASX-listed uranium developer Cauldron Energy, and would result in MGT holding a 5.89% interest in the uranium company.
Cauldron holds uranium exploration tenements in Australia and Argentina.