I guess, that the UXA board of directors must have met, albeit by phone conference, to discuss the next move by UXA.
From the recent quarterly report it can be thought that UXA must be in regular contact with Uranium Equities UEQ as they are drilling within 300 metres of each other at the same time (UXA at Nabarlek North and UEQ at Nabarlek East).
Chairman Neill Arthur has said that Geoscience Wireline GAA can obtain much quicker results than have been obtained by UEQ in the past.
If UXA and UEQ merged then all future drilling in the massive area of Arnhem Land would be reduce in cost both on overheads and transportation. Both companies are too small to carry on drilling without income and relying on borrowing and rights issues.
A joint company could push the GAA company forward more quickly, especially in the States where a new logging truck is being bought at great expense. UEQ could also use GAA for all its drilling purposes.
UEQ is a larger company by market cap as UXA's stock price has tumbled more quickly than that of UEQ's. A complete guess of course, but I think a merger that priced UXA's stock at around 1.7c a share would be of great advantage to both companies and, imho, to the value for shareholders.
UXA Price at posting:
1.3¢ Sentiment: None Disclosure: Held
