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Cauldron Energy Ltd recovers judgement debt

The resolution of the issue provides closure and Cauldron has in excess of $5 million in cash and liquid assets.
Cauldron Energy Ltd recovers judgement debt

Cauldron Energy Ltd (ASX:CXU) has recovered $0.5 million of judgement debt leaving the company well-funded with an estimated $5 million in cash and liquid assets.

This will allow Cauldron to focus on finalising field leach trials at the Bennet Well uranium deposit within its Yanrey Uranium Project in Western Australia.

Cauldron received judgement in its favour in respect of its claim against Guangzhou City Guangrong Investment Management Co. Ltd.

The judgement debt payable by Guangzhou City to the company is $1 million plus interest.

Guangzhou City was the registered holder of 33,898,812 shares in Cauldron, which were sold in July to recover $508,475 as part of the debt owing.


Background

Cauldron has two projects in two known uranium provinces in South Australia and Western Australia and 3,400 square kilometres of exploration tenements in Argentina.

The Yanrey Project in Western Australia comprises 12 granted exploration licences and 7 applications for exploration licences for a total of 2,954 square kilometres.

Yanrey is prospective for large sedimentary-hosted uranium deposits and hosts the company’s flagship Bennet Well uranium deposit.
 
The Marree Joint Venture in South Australia comprising five granted exploration licences for 2,794 square kilometres and is prospective for sedimentary-hosted uranium deposits and base metals.

Cauldron is awaiting approvals to commence drilling in Argentina.


Yanrey Project: Bennet Well

In December 2015, Cauldron achieved its objective of increasing the Mineral Resource estimate of the Bennet Well uranium deposit.

The upgraded Mineral Resource JORC 2012 estimate was reported as 38.9 million tonnes at 360 parts per million uranium for 30.9 million pounds of uranium oxide.


Analysis

Today's result ensures the issue is finalised and the overhang of shares is now gone. Cauldron also has in excess of $5 million in cash and liquid assets.

 

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