sxr Uranium mum on Canada buy

sxr Uranium One (sxr), which owns the South Africa’s largest undeveloped uranium mine, is tight-lipped about a report that it held talks to acquire Canada’s Denison Mines.

Sxr’s chief executive Neil Froneman would not comment on questions regarding the talks, but he did state that Uranium One would consider acquiring assets as long as they were ‘value accretive’.

On Friday, Canada’s Globe & Mail reported that both Uranium One and the International Uranium Corporation (UIC) had held talks with Denison.

Uranium One was created in 2005 when Aflease, run by Froneman, injected its assets into Southern Cross Resources, a Canadian listed uranium explorer.

According to the Globe & Mail, Denison is the only junior involved in uranium production in Canada, through its 22.5 percent stake in the world’s sixth largest uranium facility, McClean Lake. It also holds a quarter of the Midwest Uranium Project and explores in Mongolia, Australia and Canada.

Denison is about half the size of Uranium One in terms of market capitalisation.

In the past couple of months Uranium One has released feasibility studies on its South African and Australian assets as well as announced the acquisition of two uranium mills in the US and discussed another potential asset purchase in that country.

Froneman described the due diligence process on both mills as “going fine” and said they were “well advanced.”

The company will produce the first uranium from its Dominion project West of Johannesburg early next year. – I-Net bridge