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UraMin Inc (UMN)

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Tuesday 22 May, 2007

UraMin Inc

Extension of Niger Project

UraMin Inc
22 May 2007




22 May 2007

                                   UraMin Inc.
                           ('UraMin or 'the Company')

                   NOT FOR DISSEMINATION IN THE UNITED STATES
                 OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

                    Award of Additional Exploration Licences

               Extends Recently Established Niger Uranium Project


UraMin, the company primarily focused on near-term uranium mining projects in
Africa, announces that it has signed mining conventions for two additional
exploration areas in the Republic of Niger to prospect for and, if economically
viable, mine all minerals, including uranium.  This follows the announcement on
7 May 2007 of the signing of four mining conventions in the area.  The project
is UraMin's fourth uranium mining project in Africa.



Key Points

  • Strengthens and consolidates UraMin's position by signing mining
    conventions for two additional exploration areas (Dabala 3 and 4) adjacent
    and to the north of the four existing UraMin licenses (Kamas 1 to 4)

  • UraMin's Niger licenses are all located within the well known and
    prospective Tim Mersoi Basin

  • The six license areas total 2,773 square kms and are situated along the
    proven Arlit Fault zone to the north of existing uranium producing mines

  • Stable, favourable fiscal regime for duration of the prospecting and
    mining period

  • State entitled to 10% free carried interest and to acquire additional
    interest of up to 30% on commercial terms in respect of all six concession
    areas

  • Exploration planning complete and mobilization to site is imminent



Further Details

The Tim Mersoi basin is a major world uranium province wherein the deposits,
hosted by sandstones, are roll front type, which are reduced and consist of
pitchblende and coffinite (Akouta, Arlit, Afasto, Madaouela) associated to
Carboniferous terrains or oxidized (Imouraren) within Jurassic age formation.

Niger has been mining uranium since 1971 and past production from its 2
operating mines exceeds 100,000 tonnes of uranium (approximately 2,600,000 lbs
of U3O8) to the end of 2006. With an output of over 3,093 tU in 2005, Niger was
the world's 6th largest uranium producer contributing 7.75% of the total world
production.

All of UraMin's six concession in Niger are located along the western edge of
the Arlit Massif and to the north of SOMAIR's successful Arlit mine. The Arlit
flexure/fault lies just inside and along the western edge of the UraMin
concessions. Splays off this major structure strike north east through the Kamas
and Dabala blocks. Its influence dominates the sedimentology and paleogeography,
and consequently also the distribution of uraniferous mineralisation.

The main prospecting target on the UraMin concessions is the Devonian ash-pit
gravel, which in a reduction environment is favourable to the presence of
uranium. On the structural plan, the favourable zones are along the Arlit
flexure, where synforms related to the latter constitute traps for uraniferous
mineralisation.

The Mining Conventions entered into provide for favourable and stable fiscal
conditions over the duration of the prospecting and mining period of 20 years,
renewable for further periods if necessary. Incentives include total exemption
from most taxes, import benefits and income tax waivers for expatriate employees
during exploration. During the exploitation phase various tax, customs, export
and related benefits are guaranteed. In addition, the state makes customary
guarantees against discrimination, changes in law, restriction in funds
transfer.


State's entitlement to acquire additional interest

Following preparation of a feasibility study, if the project should proceed to
the exploitation phase, UraMin is required to incorporate a local company to
conduct exploitation activities. The state is entitled to a free carried 10%
interest in the company. The State is also entitled, at its election, for value
and on commercial terms, to acquire a further 30% interest in the exploitation
company.


Correction to Press Release of 7 May 2007

The State's entitlement to acquire an additional 30% interest on commercial
terms applies in respect of not only the two Dabala concession areas, but also
the four Kamas concession areas previously awarded to UraMin and announced by
the Company in a press release of 7 May 2007. The 7 May 2007 press release
incorrectly reported that the State's entitlement to acquire an additional
interest on commercial terms was limited to a 20% interest in the exploitation
company when in fact the correct position is that it is limited to an additional
30% interest.


Ian Stalker, Chief Executive of UraMin, said:

'The new Niger license areas represent an extension and consolidation of our
Niger interests. A UraMin team is currently in Niger to ensure that our
exploration programme commences as soon as possible.'





For further information:

Ian Stalker, Chief Executive Officer
Neil Herbert, Finance Director
James Pitman, Vice President Business Development
Tel: +27 11 783 5056

Nominated Advisor
Canaccord Adams Limited
Robin Birchall
Tyler Broda
Tel: +44 20 7050 6500


Toronto
Steve Vaughan
Tel: +1 416 643 6924


UK Media Enquiries
Financial Dynamics
Tel: + 44 207 831 3113



Notes to Editors

GLOSSARY

Feasibility study  a comprehensive study of a deposit in which all geological, 
                   engineering, operating, economic and other relevant factors 
                   are considered in sufficient detail for it to reasonably 
                   serve as the basis for a final decision by a financial 
                   institution to finance the development of the deposit for 
                   mineral production
tU                 Tonnes uranium
Lb                 Pound
U3O8               Triuranium octaoxide
Uranium            heavy silvery-white metallic element found in several 
                   minerals, notably uraninite and carnotite


UraMin (www.uramin.com) was established in 2005 to acquire and develop mineral
properties, predominantly uranium. Following the private placement the Company
currently working capital of approximately US$300 million and a market
capitalization of approximately US$1.9 billion on an undiluted basis. UraMin
(www.uramin.com) is traded on the Alternative Investment Market of the London
Stock Exchange plc and the Toronto Stock Exchange under the symbol UMN.

UraMin is currently focusing on the development of its advanced stage
exploration projects at Trekkopje in Namibia, Bakouma in the Central African
Republic and Ryst Kuil in South Africa. Through a South African joint venture,
UraMin also enjoys additional prospecting license applications for important
uranium deposits in the Karoo, South Africa. No assurance can be given that
remaining applications for prospecting licences will be successful.


Forward-Looking Statements:

This press release contains statements that are 'forward-looking'. Generally,
the words 'expect,' 'intend,' 'estimate,' 'will' and similar expressions
identify forward-looking statements. By their very nature, forward-looking
statements are subject to known and unknown risks and uncertainties that may
cause our actual results, performance or achievements, or that of our industry,
to differ materially from those expressed or implied in any of our
forward-looking statements. Statements in this press release regarding the
Company's business or proposed business, which are not historical facts, are
'forward looking' statements that involve risks and uncertainties, such as
estimates and statements that describe the Company's future plans, objectives or
goals, including words to the effect that the Company or management expects a
stated condition or result to occur. Since forward-looking statements address
future events and conditions, by their very nature, they involve inherent risks
and uncertainties. Actual results in each case could differ materially from
those currently anticipated in such statements.

Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.





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            The company news service from the London Stock Exchange                                                               

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