Uranium Equities (ASX: UEQ) is in pre-open following the ASX granting the company a trading halt, pending a development of the PhosEnergy Process.
Uranium Equities and global uranium leader Cameco Corporation (NYSE: CCJ) have jointly developed a potentially industry-changing process for the extraction of uranium from phosphoric acid streams produced in the production of phosphate-based fertilisers, “the PhosEnergy Process”.
Cameco is funding the development of this process through an investment of US$16.5 million, with a further commitment to fund a minimum of 50% of Uranium Equities’ share of the capital cost for construction of the first commercial plant, should this occur.
The company has been looking to demerge the assets, which would create two independently focussed companies and allow different funding and development strategies to be applied to the exploration and PhosEnergy businesses.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 7th August 2013.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.