(MENAFN - ProactiveInvestors - Australia) Black Range Minerals (ASX: BLR) is undertaking a partially underwritten non-renounceable rights issue to raise up to A2.1 million to drive the Hansen/Taylor Ranch Uranium Project in the U.S. towards production.
The raising will be on the basis of one new share for every two shares held at an issue price of 0.005 per share.
Importantly, Black Range's directors and officers have already reaffirmed their support for the raising and will apply for their full entitlements under the rights issue, as well as partially underwrite the raising for a minimum of 400,000.
Eligible shareholders will be entitled to apply for any shares not taken up in the rights issue.
The wholly owned Hansen/Taylor Ranch Uranium Project hosts one of the largest uranium resources within the U.S., the world's largest consumer of uranium.
The project has an Indicated and Inferred JORC resource of 69 million tonnes at 600 parts per million (0.06%) for 90.9 million pounds of uranium.
A Scoping Study, completed in the first half of 2012, indicated that an initial mining operation can potentially be developed at the Hansen Uranium Deposit at a capital cost of less than 80 million to produce around 2 million pounds of uranium per annum at an operating cost of about 30 per pound.
Considerable progress has been made on plans to conduct further mine development evaluation work at the Hansen Uranium Deposit, including preparation to conduct onsite trials of underground borehole mining.
Black Range is targeting receipt of all permits required to conduct these trials in the second half of 2013.
The company is targeting the receipt of all mining permits by 2015 and the commencement of production in 2016.
Uranium demand on the rise
Key countries have re-affirmed their commitment to nuclear power post-Fukishima, including China which is now seeking to steadily resume approval and construction of new nuclear power plants and is planning to approve a small number of new nuclear power projects by 2015.
China, India, South Korea and Russia will account for 70% of new plants coming on stream.
Uranium demand is positive for the long term and is expected to double over the next two decades, with supplies set to fall short in the near future as global nuclear power capacity grows at a reported rate of 30% to 100% by 2030.
The supply gap is estimated at around 30 million pounds by 2014 as a result of delays on several projects, diminishing supplies and the ending of the HEU agreement between Russia and the U.S. in 2014.