Toro Energy has bought an additional 25% stake in the Nowthanna uranium project taking its total holding up to 70% in the project that is situated 150 km west from its Wiluana uranium mine.
Toro Energy hopes to begin uranium production at the Wiluna project by late 2013.
Toro Energy managing director Greg Hall said that the purchase will make the company’s position as a major player in the region stronger. The company will pay $1.3 million cash and $820,000 worth of Toro shares for the Nowthanna project. This is the sixth regional purchase for Toro Energy in uranium resources situated in Western Australia.
Mr Greg Hall believed that by picking up these regional plays they were enhancing the potential value to their shareholders going forward, these sort of regional plays do take a lot more work but certainly it's giving them a much larger footprint. He thought that it was a good acquisition in difficult market times.
The stock markets also seem to support the view as Toro Energy shares went up by four cents after the Nowthanna deal was established. The company suffered due to the Fukushima nuclear crisis in Japan this year but it is on the upswing now.