Uranium Equities (ASX: UEQ) is evaluating a possible separation of its exploration and PhosEnergy Process assets via a demerger, which has the potential to unlock some value from PhosEnergy for the company.
The PhosEnergy Process is a patented process for the extraction of uranium as a by-product from phosphate in the production of phosphate-based fertilisers.
The demerger would involve an in specie distribution of shares in a new entity to existing shareholders of Uranium Equities on a pro-rata basis.
The proposal is currently undergoing detailed consideration with a view to making a decision in the next few weeks. In the event of a demerger, various regulatory approvals including shareholder approval would be required.
The company's key focus is the Nabarlek Project surrounding the historic Nabarlek Uranium Deposit (previous production: 24Mlbs at 1.84% U3O8) in the Northern Territory.
The previously mined deposit lies within an extensive uranium mineral system
which extends over more than 50 square kilometres within the Mineral Lease and the surrounding tenements.
Uranium Equities recently received applications for 34 million shares in a Non-renounceable Rights Issue to raise around $850,000.
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