Uranium explorer A-Cap Resources has cut short an agreement with the company that provides its CEO.

A-Cap (ASX:ACB) told investors late yesterday that the agreement with Raba-Rax Solutions and Paul Thompson had been terminated.

The company is now looking for a new boss to help implement and manage its “diversified minerals strategy”.

A-Cap has uranium and coal projects, but wants to acquire cobalt and nickel projects to supply cathode materials to the battery industry.

The junior explorer recently struck a deal with fellow ASX-listed Castillo Copper over the Marlborough nickel and cobalt project near Rockhampton in Queensland.

A-Cap will inject $2.25 million over two years on exploration of the project to earn a 60 per cent stake.

But the company will also continue to advance optimisation work for its Letlhakane uranium project in Botswana.

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.

A-Cap’s share price has gained nearly 20 per cent since the news broke and was trading at 4.3c this morning.

A-Cap Resources (ASX:ACB) over the past year.
A-Cap Resources (ASX:ACB) over the past year.

Cameco’s McArthur River was the world’s largest uranium mine producing more than 8 million kilograms of uranium.

The suspension of production 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.

A-Cap has been contacted for comment.

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