Options add funds for Delecta in Colorado uranium pursuit
Delecta appears well funded for its push back into uranium exploration, having last month announced the exercise of options worth more than $1.1 million.
The option conversion was announced by Delecta (ASX:DLC) to the ASX on September 24, and the company’s cash reserves are now above $2.8 million.
It comes at a good time for the diversified investment company, which also kicked off a series of sampling and mapping programs at the REX uranium-vanadium project in Colorado last month as the sector’s sentiment started to turn.
The change in uranium’s fortunes has been driven by Sprott Physical Uranium Trust’s buying up of physical uranium, combined with shifting global sentiment towards nuclear as a stable baseload for a reduced-carbon energy future.
DLC managing director Malcolm Day said the sentiment shift had encouraged Delecta to renew its work at REX.
“Due to renewed optimism surrounding future uranium pricing, the company recently decided to ramp up exploration at its majority owned REX uranium-vanadium project,” he said on September 13.
“The project’s history of uranium mining, its proximity to operating infrastructure and the prevailing supportive government regime, bodes well for the development of the project.”
“We look forward to continuing exploration at the REX project and evaluating other potential uranium-vanadium projects in the area.”
Delecta owns 60% of Sunrise Minerals, which in turn wholly owns the REX project spanning 20km2 in the prolific Uravan Mineral Belt.
The belt itself has produced 86 million pounds of uranium at a grade of 0.24% and 441 million pounds of vanadium at a grade of 1.25% since 1898.
Initial sampling carried out late last year at the project returned high grade uranium and vanadium results, with 12 samples returning an average grade of 0.22% uranium with a peak value of 0.528%.
The option conversion boosts the company’s coffers as exploration kicks back off, adding $1,115,300 courtesy of 139,412,500 converted 0.8c options.
A total of 96.9 million options exercisable at 0.08c on or before September 3, 2023; and 10 million options exercisable at 1c on or before December 31, 2023, remain unexercised.
According to its recent ASX releases, Delecta expects assays from the current sampling program to be returned in the coming weeks.