uxa's position

UXA have now expended AU$1.2 million drilling at Mundi Plains (Dome5) and Junction Dam and could now pull out of the agreement with Canada's Teck Resources. However, they will it seems continue at least until the end of March 2012 when results are due.
Teck Resources have an option to buy back in and may do so if the results of drilling at Dome5 are good enough.
UXA should then move on to drill for Copper and Gold at Junction Dam, South Australia, not far away -- may not happen if Teck and other partners do not buy back in.

Borrowing from La Jolla Cove could be used for Junction Dam drilling, we must wait and see.

GAA wireline profits are being used to pay interest on senior debt though La Jolla Cove are converting interest payments on junior debt into shares in UXA.

GAA Wireline Australia cost A$5.7 million including stamp duty and shares in UXA. The American arm cost (including PFN Tools) about US$3.3 million in addition plus the cost in late 2011 of an additional drilling truck.

Most of UXA's cash held is ring fenced for further drilling for Uranium in Arnhem Land. Nabarlek North is important as RIL Australia (Reliance Industry's subsidiary) may buy further into the project if drilling comes good.

UXA have no costs involved in drilling of tenements in South Australia as Straights Resources will pay for all of the drilling.

UXA also have interests in the Canning Basin for Coal and Uranium, partly funded by The WA Government but they may have to farm this out as they have to Straights Resources in South Australia.