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Uranium Equities to raise $2.1 million for key uranium projects

Uranium Equities to raise $2.1 million for key uranium projects

Uranium Equities (ASX: UEQ) plans to raise about $2.1 million to progress the company’s key uranium projects in the Northern Territory, South Australia and Western Australia.

The offer, will open on November 22 and close on December 6, is fully underwritten by Patersons Securities.

The rights issue will be offered at $0.05 to existing shareholders, and is expected to raise about $2.1 million before issue costs.

Uranium Equities has a portfolio of near mine and greenfields projects including exploration licences and applications that covers more than 24,000 square kilometres.

These projects represent a number of different uranium deposit styles and targets.

The company will focus funds on particular key projects, including the Nabarlek project, Rudall River, and the Lake Frome and Marla greenfields project.

The Nabarlek Project comprises Uranium Equities’ 100%-owned Nabarlek mineral lease and the surrounding exploration licences, held in joint venture with Cameco (NYSE: CCJ TSE: CCO).

Uranium Equities’ Nabarlek mineral lease hosts the historical Nabarlek Mine, a small, high net value deposit which produced 24 million pounds at an average grade of 1.84% uranium oxide.

The Nabarlek mineral lease and surrounding West Arnhem Joint Venture tenements (Uranium Equities 40%, Cameco 60%, manager) are located in the heart of the Alligator Rivers Uranium Field in the Northern Territory.

Rudall River, a brownfield project in the east Pilbara region of Western Australia, is also held in joint venture with Cameco (Uranium Equities 40%, Cameco 60%).

The project covers exploration licences which adjoin the Cameco and Mitsubishi Development’s Kintyre deposit, which has potential for 62-80 million pounds of uranium oxide with an average grade of 0.3-0.4% uranium oxide.

Lake Frome, in South Australia’s Frome Basin, is held in joint venture with Cauldron Energy (ASX: CXU) under which Uranium Equities can earn up to an 80% interest by sole funding $5 million of exploration over five years.

Uranium Equities also holds three exploration licences in the Frome Basin.

The Marla Project is located at the northern end of the Gawler Craton in South Australia, which the company considers prospective for iron ore, copper, gold and uranium deposits and sandstone hosted uranium deposits.

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