Uvre Ltd (ASX:UVA) has started trading on the ASX following the completion of its public and priority offer, raising $6 million via the issue of shares at $0.20 each.
Proceeds from the offer will be used to further explore the East Canyon Project in south-eastern Utah, USA which is prospective for both uranium and vanadium, two minerals anticipated to play a key role in the generation and storage of low-carbon energy.
Permitting for an initial drill program of up to 50 holes at East Canyon has been received and planning for the first phase of drilling is currently underway.
Uvre managing director Pete Woods said: “We are very pleased by the strong response from both retail and institutional investors to the capital raising and the company’s strategy to explore and pursue critical minerals.
“I would like to welcome the new shareholders to the Company and thank Lead Manager JP Equity Partners, and also both Grange Consulting and Steinepreis Paganin for their assistance with the successful listing of Uvre”
History
The Uravan Mineral Belt and surrounding Salt Wash ore producing districts of the Colorado Plateau, which hosts the claims, have been an important source of uranium and vanadium in the US for more than 100 years, with historic production of more than 85 million pounds of uranium at an average grade of more than 0.13% U₃O₈ and more than 440 million pounds of vanadium at an average grade of 1.25% V₂O₅.
During 2018 and 2019, 26 samples were collected from eight sites including underground ribs/faces and ore dumps on the East Canyon Claims.
These samples assayed as high as 0.47% U₃O₈ and 9.21% V₂O₅.
Abundant visible uranium-vanadium mineralised seams and zones were also observed in the workings.
High-grade assay results
During 2020, Red Dirt carried out an initial exploration program at East Canyon Project consisting of mapping and sampling of two selected underground workings being Bonanza and None Such workings.
Extensive workings were identified at Bonanza prospect and visible uranium and vanadium mineralisation was observed throughout both prospects.
Rock chip and channel samples were assayed along with mapping data, and numerous historical drill holes were identified.
Encouraging high grade assay results were returned from underground channel sampling within both None Such and Bonanza workings, including:
- 0.6m @ 0.34% U₃O₈ and 1.55% V₂O₅ at None Such;
- 1m @ 0.22% U₃O₈ and 2.29% V₂O₅ at None Such;
- 1.25m @ 0.26% U₃O₈ and 1.68% V₂O₅ at Bonanza; and
- 1m @ 0.20% U₃O₈ and 1.89% V₂O₅ at Bonanza.
Focus on new world minerals
Uvre, as part of its long-term strategy, may also assess other value accretive opportunities with a focus on “new world minerals”, being those minerals that will be pivotal in technologies and developments associated with the de-carbonisation and electrification of the global economy and the evolution of the electric vehicle and battery markets.