Energy Metals shares up after approach
Thursday, 29 March, 2007
Business News
Energy Metals revealed this week that it has been approached by a number of major uranium companies interested in its advanced assets.
Energy Metals was spun-out of gold and base metal explorer Jindalee Resources Ltd in 2005, which holds a 38 per cent controlling interest.
Jindalee said this week that value of the stake had never been fully reflected in its share price.
"Management is looking at a number of options to ensure Jindalee's share price better reflects the value of these investments, including the possible sale of Jindalee's holdings in Energy Metals," Jindalee said today.
Speculation of possible predators for the stake has centred on Australian uranium stalwart Paladin Resources Ltd and Energy Metals' second biggest shareholder, Canadian-based Denison Mines.
Another possible bidder is fellow Canadian company Mega Uranium, which last year snapped up Australian explorers Hindmarsh Resources Ltd and Redport Ltd.
But Paladin, which is in a joint venture with Energy Metals at the advanced Bigrlyi project in the Northern Territory, has said it has enough to be getting on with in its fight to take over Summit Resources Ltd.
Energy Metals has eight projects located in the Northern Territory and Western Australia covering over 4,000 square kilometres.
Its key Bigrlyi project is 390 kilometres north west of Alice Springs and recently upgraded its resource estimate by 26 per cent in uranium to 14.3 million pounds and 17 per cent in vanadium to 16.3 million pounds.
News on Monday of interest in Energy Metals assets sent its shares up 18.6 per cent or 80 cents higher to $5.10.
Today it closed at $5.52, down three cents, as Jindalee shares soared 28 cents, or 16.8 per cent, to $1.95.