A-Cap seeks P100m for Letlhlakane uranium study

Brian Benza
Staff Writer | Monday November 29, 2010 00:00

The uranium developer said in a statement that it has completed a private institutional placement of 22,86-million shares, at 42c a share, to raise around A$9,6-million.

The placement was made to Asian and United Kingdom (UK)-based institutions. A-Cap's largest shareholder, China Growth Minerals, would increase its shareholding to 16,6 percent through the placement.

The company also announced a share purchase plan, under which it would offer 14,28-million shares, at 42c a share, to raise A$6-million. The share purchase plan would enable shareholders to subscribe for A-Cap shares with between A$2 100 and A$15 000, with no associated brokerage costs.

The share purchase plan would open on December 2 and close on December 22, with the allotment of shares taking place before the end of the year.

The Letlhlakane project currently has a Joint Ore Reserves Committee resource of 158-million pounds of uranium oxide, and A-Cap was conducting a bankable feasibility study on the project.

Pending positive results from the bankable feasibility study, A-Cap believed that it would be feasible to achieve its first uranium production next year.

Uranium mineralisation is so close to the surface that one could mine with a 'broom and a shovel', says Australian uranium explorer, Dr Andrew Tunks of parts of Letlhakane, where independent consultants have delineated a 100-million-pound resource in half the time scheduled.

Tunks predicts that where A-Cap is exploring will 'certainly be one of the largest places of contained uranium anywhere'.

Uranium mineralisation in some trenches begins at a mere 20 cm below surface.

'It's material you can pick up and crush in your hand. It's a massive resource with great scope to grow and we'll be talking to the government on how to fast-track this and maybe getting into production by 2010,' Tunks says.

Envisaged is a simple digging up of the near-surface oxide material, placing it on a pad and leaching out the uranium.