Boutique investment fund takes 10pc stake in uranium explorer Boss
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Private Australian boutique investment fund Paradice Investment Management has taken a nearly 10 per cent stake in junior uranium explorer Boss Resources.
Investor interest in uranium stocks has picked up following news in late July that Canadian uranium heavyweight Cameco indefinitely suspended production at its McArthur River mine.
It was the world’s largest uranium mine producing more than 8 million kg of uranium.
The move removes 11 per cent of global supply from the market and Cameco will still need to source material from the market to fill contracted sales positions, which will put an even bigger strain on a market that is already in deficit.
Boss (ASX:BOE) appears to be benefiting from this renewed interest. Shares climbed nearly 6 per cent to an intra-day high of 7.2c this morning and have doubled since March.
The company owns the Honeymoon project in South Australia, 75km north-west and across the border from Broken Hill.
Boss recently released 137 million shares held by Grant Davey from voluntary escrow to “facilitate additional support by existing Tier 1 institutional shareholders”.
The shares were part of the consideration paid to Mr Davey for the remaining 20 per cent stake in the Honeymoon mine. The rest of the 300 million shares remain in escrow.
Boss has been contacted for comment.