Galahad in uranium move
Article Date: Jun 30 2005AIM-quoted Galahad Gold, where Jim Slater and Lord Rothschild have stakes, has taken 26 per cent of Johannesburg-based uranium developer Uranco.
Uranco, registered in the British Virgin Islands, has obtained or applied for mineral rights over uranium properties in South Africa potentially containing more than 100 million lbs of uranium. The company has also agreed to acquire Namibia's Trekkopje deposits, with a uranium resource of more than 70 million lbs.
Major US groups Esso and Union Carbide spent £14.5 million carrying out extensive work on the South African properties in the 1980s and Uranco is using their data. Galahad is paying £2.75 million cash and issuing 9.9 million shares to take 26 per cent of the company.
Ian Watson, chairman and managing director of Galahad, says, 'we are in the process of building up a high calibre team of uranium industry experts to expedite the development of Uranco's deposits.'
An AIM float for Uranco must now be on the cards. This could have a favourable impact on Galahad's shares at 10.38p.
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