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EPIC: URU
Market: AIM
52-week High/Low: 3.00p / 0.48p
Sector: General Mining - Uranium & Lithium
Market Cap: 1.71M
Phone: +1 416 504 3978
Address: Suite 702, 85 Richmond Street West, Toronto, Canada, M5H 2C9.
Website: www.niger-uranium.com
URU Metals

URU Metals

URU Metals is an AIM listed base metals explorer and development Company. The Company has a diverse portfolio of assets which includes, the Zebediela Project in South Africa, with combined inferred and indicated resources of over 1.5 billion tonnes of nickel.  The Nӓrke Oil/ Uranium Project in Sweden which is 100 per cent owned by URU Metals following the purchase of the entire issued share capital of Svenska Skifferoljeaktiebolaget ("SSOAB") from the vendor Global Hydrocarbons Limited ("GHL"), for a maximum total consideration of $1.078 million in June 2013. A drilling plan to verify historical data is planned in 2014.  As well as the Nueltin Gold-Uranium Project in Canada. URU Metals has an exclusive option agreement with Cameco Corporation ("Cameco"), one of the world's largest uranium companies, to earn a majority interest in Nueltin Lake Gold-Uranium Project ('the Project"), in the Kivalliq Region of the Territory of Nunavut, Canada.due to start Q2 2014.

Deal URU Tax Free* Losses can exceed
your initial deposit
*subject to change and depends on individual circumstances.

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Big picture - Why invest in URU Metals


URU Metals’  chief executive, John Zorbas, can’t be faulted for thinking big – even if the market value of the company he runs is anything but.

URU Metals Snapshot

Strategy

Our strategy is to build shareholder value by identifying, investing in, and developing the potential of mineral projects. URU Metals focuses on projects that can, with a modest investment, enter into the pre-feasibility stage within a three-year timeframe.

 

Our vision is to become AIM’s best mid-stage mineral project investor and project developer, irrespective of mineral commodity or geographic location. To achieve our vision, the Company utilizes a three prong approach to building a project portfolio:

 

URU Metals is exploring and developing a portfolio of high quality assets across a targeted spectrum of commodities in several geographic jurisdictions.

 

Southern African Nickel (“SAN”) Joint Venture - South Africa - Zebediela Nickel Project

URU Metals owns 100% of The Zebediela Nickel Sulphide Project following the completion of the acquisition of shares of Umnex Minerals Limpopo (Pty) Ltd ("UML") in April 2014.  The project is located in the Limpopo Province of South Africa close to the platinum mining town of Mokopane.

 

Zebediela is a world-class project with combined inferred and indicated resources of over 1.5 billion tonnes of nickel.  A Preliminary Economic Assessment ("PEA") was completed in 2012 showing indicated resources of 485.4 million tonnes averaging 0.245% Ni with additional inferred resources of 1,115.1 million tonnes at a grade of 0.248% Ni.  The PEA indicated that Zebediela is likely to be a low quartile cost nickel producer with an NPV8 of US$1 billion for the Indicated resources only at a 20Mtpa mining rate at 25,000 tonnes of nickel.

 

On commencement of production Zebediela will be the 12th biggest nickel mine in the world and with expansion initiatives at has the potential to become one of the world's top 10.  With the scale and attractive economic fundamentals of Zebediela clearly demonstrated, this project will remain a priority focus for URU Metals.

 

The Burgersfort Nickel Project

URU Metals owns 50% of the Burgersfort nickel project, a joint venture between SAN and BSC Resources, is located in the Mpumalanga Province of South Africa. Previous exploration of this site by Goldfields and Falconbridge identified several shallow disseminated nickel targets and three deeper massive sulphide nickel targets.

 

Three major targets have been identified on the property. Diamond drilling was done at these locations; MDM, Mintek and SGS will conduct the metallurgical work, which will be used in the scoping study.  However, our partners on the project are going through an arbitration process and all work has been put on hold until the arbitration concludes.

 

Närke Project

The Närke Oil-Uranium Project is located approximately 150km west-south-west of Stockholm, near the regional centre of Orebro.  The exploration licences cover approximately 7,087 ha of land overlying prospective Alum Shale outcrops with known high levels of kerogen (which can be converted to oil), and metals such as uranium, vanadium, molybdenum and nickel.  

 

Between 1941 through 1966, a Swedish government-owned company produced 61 tonnes of uranium (134,500 lbs) and established an oil-recovery plant on the project, which recovered approximately 159,100 m3 of petroleum (1 million barrels) and 418,400 m3 of fuel oil (2.6 million barrels),

 

The Alum shale is world renown as being one of the world's largest repositories of metals, particularly uranium.  Perceived uranium resources within the Alum Shales are generally believed to be larger than most of the combined uranium resources from the producing global uranium districts.  Although an economic recovery of uranium from the Alum Shale has not yet been developed, technological advances in the last decade make this project potentially viable.

 

URU's focus will be on reducing risk by proving that a co-recovery extraction process can be developed using existing technologies before incurring significant investment into proving up uranium and oil mineral resources and reserves.   Historic drill holes testing the Alum Shale on the existing licenses were completed by previous explorers, indicating that good thickness of the Alum Shale are present across all the mineral licenses being acquired by URU.

 

Nueltin Lake Gold-Uranium Project

URU Metals has an exclusive option agreement with Cameco Corporation (“Cameco”), one of the world’s largest uranium companies, to earn a majority interest in Nueltin Lake Gold-Uranium Project (‘the Project”), in the Kivalliq Region of the Territory of Nunavut, Canada.  The Nueltin Project consists of 34 mineral claims and 1 mineral lease covering a combined area of approximately 27,279ha.

 

The project lands contain the Sandybeach Gold-Uranium Zone, a new bedrock gold- uranium discovery made by Cameco during its 2008 diamond drilling programme, where previously unknown mineralisation at depths less than 100m from surface were encountered in drill core with assay grades up to 8.95 g/t gold over 5.95m, 3.27 g/t gold over 7.25m, and 0.23% U3O8 over 1.25m.

 

Under the terms of the option agreement, signed on 5 February 2013, URU Metals will fund a total of CDN$2.5 million on exploration expenditures over a three-year period in return for a 51% stake in the project (“the First Option”). On completion of the First Option, URU has the option to earn an additional 19% interest in the project by funding a further CDN$8.0 million in exploration over a four-year period (“the Second Option”).

 

On successful completion of both options, the Company would have earned a 70% interest in the project by completing CDN$10.5 million in exploration expenditures over a seven-year period. URU will be the project operator over the option earn-in period.

 

After URU completes its earn-in requirement under the Option Agreement, the parties will enter into a standard joint venture agreement, the form of which has already been agreed to and appended to the Option Agreement.

 

Nueltin Lake Gold-Uranium Project

URU Metals has an exclusive option agreement with Cameco Corporation (“Cameco”), one of the world’s largest uranium companies, to earn a majority interest in Nueltin Lake Gold-Uranium Project (‘the Project”), in the Kivalliq Region of the Territory of Nunavut, Canada.  The Nueltin Project consists of 34 mineral claims and 1 mineral lease covering a combined area of approximately 27,279ha.

 

The project lands contain the Sandybeach Gold-Uranium Zone, a new bedrock gold- uranium discovery made by Cameco during its 2008 diamond drilling programme, where previously unknown mineralisation at depths less than 100m from surface were encountered in drill core with assay grades up to 8.95 g/t gold over 5.95m, 3.27 g/t gold over 7.25m, and 0.23% U3O8 over 1.25m.

 

Under the terms of the option agreement, signed on 5 February 2013, URU Metals will fund a total of CDN$2.5 million on exploration expenditures over a three-year period in return for a 51% stake in the project (“the First Option”). On completion of the First Option, URU has the option to earn an additional 19% interest in the project by funding a further CDN$8.0 million in exploration over a four-year period (“the Second Option”).

 

On successful completion of both options, the Company would have earned a 70% interest in the project by completing CDN$10.5 million in exploration expenditures over a seven-year period. URU will be the project operator over the option earn-in period.

 

After URU completes its earn-in requirement under the Option Agreement, the parties will enter into a standard joint venture agreement, the form of which has already been agreed to and appended to the Option Agreement.

 

Närke Project

The Närke Oil-Uranium Project is located approximately 150km west-south-west of Stockholm, near the regional centre of Orebro.  The exploration licences cover approximately 7,087ha of land overlying prospective Alum Shale outcrops with known high levels of kerogen (which can be converted to oil), and metals such as uranium, vanadium, molybdenum and nickel.

 

Between 1941 through 1966, a Swedish government-owned company produced 61 tonnes of uranium (134,500 lbs) and established an oil-recovery plant on the project, which recovered approximately 159,100m3 of petroleum (1 million barrels) and 418,400m3 of fuel oil (2.6 million barrels),

 

The Alum shale is world renown as being one of the world's largest repositories of metals, particularly uranium.  Perceived uranium resources within the Alum Shales are generally believed to be larger than most of the combined uranium resources from the producing global uranium districts.  Although an economic recovery of uranium from the Alum Shale has not yet been developed, technological advances in the last decade make this project potentially viable.

 

URU's focus will be on reducing risk by proving that a co-recovery extraction process can be developed using existing technologies before incurring significant investment into proving up uranium and oil mineral resources and reserves.   Historic drill holes testing the Alum Shale on the existing licenses were completed by previous explorers, indicating that good thickness of the Alum Shale are present across all the mineral licenses being acquired by URU.

 

David Subotic - Non-Executive Director and Chairman

Mr. Subotic is a former Vice President of Haywood Securities, an international investment firm specialising in the resource sector, where he helped raise more than $2 billion in financing for commodities and oil and gas companies. Previously, Mr. Subotic was Vice President of Canada's Yorkton Securities, a national full-service firm that provides services to institutional investors, issuing companies and retail clients. Most recently, Mr. Subotic was the founder and CEO of Asian Coast Development Ltd., an international resort developer planning the $4.2 billion Ho Tram Strip integrated resort destination in Southern Viet Nam. Mr. Subotic is currently the CEO and CIO of DAS Capital, a Singapore- and Toronto-based hedge fund, and President, CEO and Director of NWT Uranium Corp.

 

Jay Vieira - Non-Executive Director

Mr. Vieira is, and has been since 2006, a partner with the law firm of Fogler, Rubinoff LLP, Toronto, Ontario. Prior to that and since 2000, Mr. Vieira was an associate with Sui & Pathak, Sui & Company and Himlefarb, Prozanski as well as being as sole practitioner. Mr. Vieira focuses on the area of securities and corporate finance. Mr. Vieira is a member of the Canadian and Ontario bar associations and the Law Society of Upper Canada. Mr. Vieira was admitted to the Ontario bar in 1999 after obtaining his LL.B. from the University of Windsor Law School. Mr. Vieira holds a B.A. (Hons.) in Humanities from McMaster University.

 

John Zorbas - Chief Executive Officer

Mr Zorbas is a resource entrepreneur with a proven track record in the metals exploration and development industry.  He is currently Executive Chairman of NWT Uranium Corporation ("NWT Uranium") and Chief Executive Officer of Mercom Oil Sands plc.  He is also a director of both ZorCorp Capital Holdings and Starline Capital Holdings Infrastructure Fund, and served as President of MGM Productions Group Inc..  Mr Zorbas has held senior advisory positions in various facets of business including operations, marketing, sales, strategic planning and structured finance.

 

The Company’s issued share capital consists of 228,304,237 Ordinary Shares, each share having equal voting rights.

 

35.77% of the voting Ordinary shares is not held in public hands.

 

As of the 30 May 2013 the Company had been notified, in accordance with the Disclosure and Transparency Rules, of the following shareholdings amounting to 3% or more of the ordinary share capital of the Company:

 

URU Metals Limited

Suite 702, 85 Richmond Street West

Toronto, Canada

M5H 2C9

T: +1 416 306 9832

F: +1 416 504 3982

www.urumetals.com

Company Secretary

Building 1, 31 Impala Road 

Chislehurston 

Sandton 

Gauteng, 

South Africa 

2196

 

Nominated Adviser and Brokers

Northland Capital Partners Limited

131 Finsbury Pavement

London, EC2A 1NT

Beaufort Securities Limited

131 Finsbury Pavement

London, EC2A 1NT

 

Registrars

Computershare Investor Services (Channel Islands) Limited 

P.O. Box 83 

Ordnance House 

31 Pier Road 

St. Helier 

Jersey JE4 8PW 

Channel Islands

 

Solicitors to the Company (SA)

Edward Nathan Sonneburgs

150 West Street

Sandton, 2146

South Africa

 

Auditors and Reporting Accountant

KPMG Inc. 

85 Empire Road

Parktown 

South Africa

 

Depositary

Computershare InvestorServices PLC 

P.O. Box 82 

The Pavilions 

Bridgwater Road 

Bristol BS99 7NH 

United Kingdom

 

Competent Person

MSA Geoservices (Pty) Limited

PO Box 81356 

Parkhurst 2120 

South Africa

 

Principal Bankers

Citibank NA 

111 Wall Street

New York 

United States of America

 

Solicitors to the Company as to BVI law

Walkers 

Walkers Chambers 

P.O. Box 92 

Road Town 

Tortola

British Virgin Islands

 

Solicitors to the Company (UK)

Kerman & Co 

200 Strand 

London WC2R 0ER 

United Kingdom

 

Financial Public Relations Adviser

St Brides Media & Finance 

3 St Michael’s Alley 

London 

EC3V 9DS 

T: +44 (0) 20 7236 1177

 

Solicitors to the Company as to Niger law

Monsieur le Batonnier 

Marc le Bihan 

(Lawyer at the Bar of Niger)

BP 343 

Niamey 

Niger

Herbert Smith LLP 

66 Avenue Marceau

75008 

Paris 

France

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