URU Metals Limited is pleased to provide an update on the Company's investment in UrAmerica Ltd ("UrAmerica"), the private exploration company with large-scale uranium exploration permits in Argentina, Paraguay and Colombia.
The Company has been informed that UrAmerica has obtained 100% of the rights to conduct exploration activities on an extensive and prospective land holding in Chubut Province, Argentina (the "Chubut Agreement"). This exploration area is situated close to UrAmerica's existing exploration license areas and adjacent to Argentina's National Commission of Atomic Energy's (CNEA) 15.4 Mlbs Cerro Solo Deposit. Pursuant to the Chubut Agreement, UrAmerica issued 26.5 million shares in consideration such that the total number of shares now in issue in UrAmerica stands at 48,118,685. Accordingly, URU Metals' shareholding of 4,421,000 shares in UrAmerica has been diluted from 20.89 per cent. to approximately 9.2 per cent. of UrAmerica's issued share capital.
Following the strengthening of its asset base, UrAmerica has also confirmed to URU Metals that it intends to progress a listing of the newly expanded entity on a major international stock exchange.
Paul Loudon, Non-Executive Chairman of URU Metals, said:
"URU Metals is convinced of the potential value of its investment in UrAmerica and believes that these additional exploration rights enhance UrAmerica's exposure to an already proven uranium producing area of Argentina and we look forward to further developments as the project and listing plans of UrAmerica progress."
For further information:
Gordon Cassidy, Finance Director
Tel: +27 (0)11 269 4900
Beaumont Cornish Limited (Nominated Adviser)
Tel: +44 (0)20 7628 3396
Brand: Mining IR
André Morrall/Dr Iestyn Adams
Tel: +44 (0)151244 5585
Daniel Stewart & Company (Brokers)
Tel: +44 (0)20 7776 6561
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