Wednesday
Apr092008
Aurora Energy loses vote 8-7!
Wednesday, April 9, 2008 at 12:32AM
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.
If you are new to this web site and would like to stay in touch with the uranium sector and investment ideas regarding uranium stocks, then please click this link and enter your email address.
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.
If you are new to this web site and would like to stay in touch with the uranium sector and investment ideas regarding uranium stocks, then please click this link and enter your email address.
Reader Comments (2)
AXU climbs back 10.86% after being savaged yesterday - expect more volatilty.
Bad Luck for Aurora,positive for C.Z.Q.
in mining friendly Sweden.The future looks very rosy for
Continental Precious Minerals,with the next 43-101 prehap's
a doubling to ONE BILLION lb ore body.