my theory behind the buying..

Cape Lambert have recently taken over/bought out Copper Co from administration.

Copper Co's major Copper mine is Lady Annie near Mt Isa which was a producer of approximately 19,000 tonnes of Copper cathode per annum.

Universal Resources have another huge JORC compliant (128.54 million tonnes) Copper mine (Roseby Copper Project) which is very close as far as proximity to the Lady Annie. Interestingly enough, Copper Co owns a 7.23% stake in Universal Resources.

In the Cape Lambert Sale of Copper co Document it stakes that Cape Lambert are entitled to the Copper Co projects in addtion their shareholdings.

The CopperCo assets also include a 25% stake in the Queensland based Lady Loretta copper project, a 100% interest in the Sappes gold project in Greece and shareholdings in various listed resources companies, including Platmin Limited (TSX/AIM: PPN).

If you look here, you will see Copper Co have a 7.23% stake in Universal Resources as of the 4th November 2008.

Now if you go back even further, you will find that Copper Co back in 2005 looked to take over Universal Resources however were unsuccessful. The interesting thing is that the document suggests back then that Roseby Project was the more important and more advanced project of the two (Lady Annie) and that there were question marks over whether it would ever be a successful cash producer. (which we all know is now a producer - see below - Page 4)

Phased development
A phased development of the Lady Annie and Roseby projects together is likely to lead to a delay in the development of Roseby – the larger and more important project.
Lady Annie is by no means certain to proceed and may not be a robust cash producer even if a decision is taken to proceed with its development. Several studies undertaken by or for Buka Minerals, the last in 2003 prior to its sale of the Lady Annie Project to CopperCo, failed to result in development of the project. If the project is not developed or underperforms, it could seriously affect CopperCo’s funding plans for the Roseby Project.

I could be way off the mark, but I think that we might be seeing Cape Lambert of another big shareholder trying to take over Universal Resources. They mention the following in their recent Quarterly

Recent increases in the copper price have triggered increased enquiries from potential providers of finance for the Roseby Copper Project. Discussions with a number of institutions are ongoing.

The volume on the charts also suggests something to.. I just wonder what is in the wind. I am now holding a fair few of these, as I suspect we will see more momentum north in the coming weeks when further details unfold.

With a market cap at around $8M, I suspect we are going to see further momentum and interest over the coming weeks.

I hold.

Cheers
Kevi