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Mining

Cauldron Energy generates $3.8 million cash for exploration through share sale

Cauldron Energy (ASX: CXU) has generated $3.8 million for exploration and working capital towards the company’s operations in Australia and Argentina.

Yesterday, Cauldron finalised negotiations for the deferred consideration and royalty from the sale of the company’s Wallbrook Project in Western Australia’s Eastern Goldfields to Saracen Holdings.

The sale, completed in March 2007, included a deferred consideration of Saracen Shares upon the commencement of mining operations, along with a $1 per tonne royalty on the first 2 million tonnes mined at Wallbrook.

Cauldron today disposed of the 5 million Saracen shares that it received yesterday, generating $3.8 million.

Cauldron’s operations include two projects in Argentina, the Rio Colorado Uranium-Copper-Silver Project and the Las Marias Uranium Project, as well as five uranium operations in Australia.

The company’s Australian projects include Yanrey in Western Australia, Marree, Lake Frome and Amadeus in South Australia and Eclipse in the Northern Territory.

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