Dynamite buys into uranium
Dynamite Resources Ltd. (TSXV:DNR) says it will acquire Tau Mining Ltd. (UK), owner of two uranium licences in Kyrgyzstan, for $36.6 million in shares and warrants.
The junior gold miner said Friday it will exchange each Tau Mining share for either a quarter of a Dynamite common share and a purchase warrant to buy another share for $1, or 15 cents cash and one-16th of a Dynamite share.
The company has also arranged private placement financing to raise up to $30 million.
“The acquisition of Tau Mining … properties in Central Asia provide us with tremendous exposure to the prolific Tien Shan Mineral Belt. We believe that these initiatives will enable us to grow the company and add significant shareholder value,” said Dynamite chairman, Stan Bharti in a release.
Dynamite shares were halted on the Toronto Stock Exchange ahead of the announcement.