Uranium development in Wyoming's Gas Hills will be funded from the proceeds of a newly completed private share placement which sees the Korea Electric Power Company (Kepco) become the largest shareholder in Canada-based Strathmore Minerals.
Kepco's acquisition of 14,586,182 common shares of Strathmore at C$0.55 ($0.55) per share has netted total gross proceeds of $8 million, which will be used to fund the first phase of exploration, developing and permitting of the company's Gas Hills project. The deal gives Kepco a 14% share in Strathmore.
Strathmore earlier announced that the deal would also include an off-take provision entitling Kepco to purchase a portion of any future annual uranium production from Strathmore's properties.
On completion of the first development phase at Gas Hills, Kepco will have the right to participate in a second phase of development. This would allow the Korean utility to take up to 40% in a limited liability project company set up to further develop the Gas Hills properties in return for a total of $32 million of funding for the program over three years.
Researched and written
by World Nuclear News