Last checked at 11 Nov 2010 13:23
For immediate release
11 November 2010
Niger Uranium Limited
("Niger Uranium", "NUL" or the "Company")
Disposal of Kalahari Minerals Shares
Niger Uranium Limited (AIM: URU), the metals exploration and development company with uranium interests in Niger and South America, and nickel interests in Southern Africa, announces that it has today disposed by way of sale through the market of its remaining minority interest in Kalahari Minerals PLC ("Kalahari") for a total cash consideration net of expenses of £5.646 million. The book value of the Kalahari shares as at 31 March 2010, the date of the last published balance sheet of the Company, was US$7.3 million. The disposal proceeds will be used by the Company for general working capital purposes and to fund the development of its main projects.
As previously announced in October, the Company commenced its 2010 exploration drilling campaign on its wholly-owned In Gall and Irhazer uranium licenses in Niger. The objective of the programme is to further evaluate prospective drill and other targets previously identified by the company during 2007 and 2008. If significant uranium mineralisation is intersected during the current drilling campaign, Niger Uranium intends to commence a scoping study in 2011 to determine whether a second phase of drilling is justified. Results from the second phase of drilling, together with previous results, could subsequently form the basis for a pre-feasibility study, which could commence towards the end of 2011.
Also in October, the Company announced the establishment of a joint venture agreement with Southern African Nickel Ltd. The Company committed to the provision of funding to the Joint Venture of, in aggregate, up to US$3.6 million over the next 20 months, approximately US$1.0 million of which has already been advanced. The Company believes that the joint venture's nickel projects have potential to host large low-grade, economic, open-pittable sulphide-nickel mineralization. The flagship target is the Burgersfort nickel project in the Mpumalanga Province of South Africa, which was previously explored by both Goldfields Mining and Development and by Falconbridge Ventures of Africa.
For further information:
Niger Uranium
Gordon Cassidy, Finance Director
Tel: +27 (0)11 269 4900
Beaumont Cornish Limited (Nominated Adviser)
Michael Cornish
Tel: +44 (0)20 7628 3396
Brand: Mining IR
Andre Morrall /Dr Iestyn Adams
Tel: +44 (0)151 531 7908