Mega Uranium Limited: Raising Capital
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Topic: Uranium Mining Stocks — October 9th, 2009
Canada’s Mega Uranium has stepped up its bid to become the state’s first uranium miner with the launch of a $52.5 million capital raising. Overnight, the company revealed plans to raise $C50 million ($A52.5 million) through a public and private placement to North American investors.
Funds raised will be predominately used to complete feasibility studies on the Lake Maitland uranium project in the eastern Goldfields, which could be in production as early as 2011. The uranium project is a joint venture with the Japan Australian Uranium Resources Development Co and ITOCHU Corporation. Funds will also be used for Mega’s other Australian assets and for working capital.
The above is a snippet from an article carried by Wabusinessnews.com and you can read it in full, just click here.
We would have thought that this move was good news for the company as it helps to progress the Lake Maitland uranium project, for which we have waited a long time. Anyway the stock price has drifted lower to close at $0.92 yesterday.
As investors in this company we will watch for now as early 2011 is not a long time in this business and as we get closer to the production date the outlook should turn rosier for Mega uranium.
Have a good one.
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I follow a group of 40 odd ASX uranium developers, explorers and hopefuls. The MEGA chart would be the most dismal of the group - if it was in my group. So I am puzzled why investors are bailing out. I note MGA.TO was in the 50c range in late 2008. I see from their website the market cap is near $200mill. Can not see a corp presentation to get a current overview. What is this Snapshot thing ??, does not work. Their latest ann on 6 Oct re the public offer of units, fails to mention PRICE ??
Would be interested in anybody else sketching out the recent history of Mega. For example, why the optimism 6 months ago and the decline in share price since then ? Most ASX uraniums would have the opposite trend, most would be well UP since May.
Comment by Warwick Hughes — October 10, 2009 @ 8:54 pm
Warwick;
Are you sure Mega is the “most dismal?”.
I own Alberta Star, Titan, Crosshair, Cash Minerals, and Santoy, and would kill to swap them for Mega (:’-( I curse the day I ever heard of Uranium stocks.
Know how much richer I’d be if I never heard of that horse’s behind James Dines, or his newsletter……..?
Comment by JoeBronx — October 11, 2009 @ 11:42 am
there is a major disconnect btwn what is needed for the future [stock-piled uranium for nuclear power plants], and the construction boom/planning going on in the world. wall street, investors, mutual funds, cannot/willnot put money where they grab a quick nickel. i am patiently waiting and loading up on uranium stocks. mega is one that will have it’s day when they are producing product and shipping it to china for their power plants. how many npp’s are being built there? howabout india? over 400 on the drawing boards, you have to look ahead…glta!!
Comment by richard — October 11, 2009 @ 12:06 pm
JoeBronx, This Saturday I will be going through my 40 odd ASX uranium stocks and will check if any have a loss as bad as Mega from May - say a halving. You realise I do not do a regular review of Canadian stocks.
I can think of one ASX stock, Indago IDG which has lost all its 09 gains - but that is due to some odd takeover goings on and it is more a gold co now than uranium. Will try and remember to follow up with a comment on weekend.
Comment by Warwick Hughes — October 13, 2009 @ 5:08 pm
Mega seems capital strong and well diversified with their projects. I bought at 0.94 and I will buy again sub 0.80. Once the price of Uranium sees a real turnaround Mega will profit strongly starting off these low levels. I hope for a healthy double bottom with a higher low. My only concern is not about Mega in particular, but is general in nature; has the price of the commodity itself peaked for good?
Comment by Basil — October 14, 2009 @ 12:51 am
Nothing in my group of 40 ASX uraniums rivals Mega’s fall since May. Uranex UNX showed the weakest price after IDG, not sure why but not to rival Mega.
Comment by Warwick Hughes — October 18, 2009 @ 6:10 am
I see MGA.TO is still unappreciated in Toronto overnight. There is this news about a mining lease just granted to them in WA.
Also news about BHP having trouble supplying U3O8.
http://www.wabusinessnews.com.au/en-story.php?/1/76140/Today-s-Business-Headlines/dba
22-October-09 by AAP
BHP under pressure on uranium business
Pressure is mounting on BHP Billiton to beef up its uranium business after confirming that it would be unable to fulfil commitments to supply international power companies. Courier-Mail
Canadian to mine WA uranium
Western Australia’s first uranium mine is one step closer to reality after a mining lease was granted to Canadian venture Mega Uranium in the eastern Goldfields region. The Australian
Comment by Warwick Hughes — October 22, 2009 @ 12:05 am
I agree with richard…buy while there’s blood in the streets. Nibble nibble nibble. Been nibbling on Mega since it dropped below $.90. I’m quite at peace with buying and holding it down here…for me it’s just a buying op. I hold Denison, Uranium One, Mawson, Continental Precious, Alberta Star, Titan, Hathor, Strathmore, Fission, Uracan, Uranerz,and a few others. Took more bites of almost all of them at or near their bottoms, and am not that far out of the money presently. Like Denison @.70, Mawson @.20, Cont. Prec in the .20’s, Hathor @1.05, Uracan @.16, etc….
Remember, too, we have no more markets, just manipulations, as one of the directors of GATA quite accurately pointed out not too long ago. That doesn’t mean we won’t see supply/demand forces come into affect, but that those forces will happen quite quickly…as the squeeze gets tight from real physical demand rather than from paper sales, the paper sellers will have to cover. Be patient. Blame Dines if you want, but unlike the powers that be that run our country (the Mafioso Bankster Cartel), he doesn’t own his own printing press (along with a clutch of Congressmen and other bought and sold yes-men in the govt) to make the markets go his way…jt
Comment by jt — October 23, 2009 @ 5:43 am