The odds of UXA coming up with a similar resource at Nabarlek North to that obtained at Uranium Equity's Nabarlek North East tenement looks quite high. As we know, the find is just 280 metres from UXA and Reliance's interest.
UXA had $1.6 million held to oneside, obtained from Reliance, when they bought their 49% interest which is being partly used on present surveying.
At some point, should a mine become feasible, Reliance would arrange the financing and UXA would reduce their interest from 51% to 30%, imho. UXA would no doubt be interested in raising a considerable sum upfront from Reliance.
As always, the worth to UXA of the above is in the risk factors. 1. Cost of producing uranium per lb. 2. Price of uranium itself. 3. Whether there proved to be enough uranium to interest Reliance.
UXA stock still appears not to recognise much in the venture at Nabarlek that would be enormous for a super minnow like UXA with a market cap of just $15.65 million.
UXA Price at posting:
4.8¢ Sentiment: ST Buy Disclosure: Held
