The long awaited vote has finally been cast eight votes in favour of implementing a three-year moratorium on uranium mining on Labrador Inuit Lands, and seven against the motion.

This news was taken badly by the shareholders who opted to sell the stock thus driving Aurora’s price down by 33%.

In a statement, Dr. Mark O’Dea, President and CEO, Aurora Energy Resources Incorporated said:

“The Nunatsiavut Government has indicated that it is supportive of natural resource development and open to evaluating ongoing project information, but needs additional time to prepare for significant developments like the Michelin Project”

“Currently there is no uranium mining on Labrador Inuit Lands and there are no plans for uranium mining operations for the next three years.”

The report carried by The Financial Post went on to say that Aurora plans to conduct an in-fill drill program at the Michelin and Jacques Lake deposits and continue with a pre-feasibility study on the Michelin Project.

This is a hammer blow for Aurora Energy to miss out by just one vote. The knock on effect also hit the stock price of FRG which has a stake of around 43% in Aurora Energy, their stock closed down 8.8% on the news.

A number of questions need to be considered such as, what are the chances of a reversal in three years time, how long would it take to get everything lined up prior to the commencement of mine construction, etc. We will allow the dust to settle and re-visit these issues shortly.

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