Boss Energy is following its gut in its move to invest in a Gulf of Carpentaria uranium project.
This follows a $15.5 million investment in Westmoreland proponent Laramide Resources.
Boss believes a moratorium on uranium mining would be lifted by the state.
The 23.5 million new shares increased the company’s stake in Laramide Resources to about 18.4 per cent on an undiluted basis.
Westmoreland Resource
Laramide’s flagship asset, the Westmoreland project, has an indicated resource of 48.1 million pounds of triuranium octoxide (U3O8)) and an inferred resource of 17.7 million pounds.
The Westmoreland uranium project is located about 380km north-west of Mount Isa with a resource of 65-plus million pounds.
Laramide president and chief executive officer Marc Henderson described Westmoreland as ranking as one of the largest undeveloped uranium deposits in the world – with the potential to be a top 10 global uranium mine.
The investment in Laramide represented an attractive opportunity to secure exposure to the significant exploration and development upside at Westmoreland for a relatively small cost Boss managing director Duncan Craib said.
Backing up the offer
Boss brought substance to the table Mr Craib said.
“If the moratorium is overturned, Boss can apply its knowledge, experience and financial strength to the Westmoreland project,” he said.
“This would be of significant benefit to the people of Queensland and all stakeholders.”
Boss will acquire the Laramide shares for a mix of cash and Boss scrip as consideration.
The total consideration of about $15.5 million comprises about $3.9 million in cash and $11.7 million in scrip via the issue of approximately 5.2 million new fully paid ordinary shares in Boss.
Boss said it had no current intention to acquire control or make a takeover offer for Laramide.