Article on megaMega Uranium Ltd.
TICKER: TSX:MGA
DESCRIPTION: Mega Uranium Ltd. is a rapidly growing and internationally diversified mineral resources company with a successful track record of obtaining quality uranium deposits and uranium prospective properties worldwide. It has uranium resources in Australia and interest in 45,000 km2 of ground with uranium discovery potential in Australia, Argentina, Bolivia, Cameroon, Canada, Colombia and Mongolia.
WEBSITE: https://www.megauranium.com
Corporate Presentation (3/09)Financial Statements (12/31/08)
The information below is based on the most recent information we have received from analysts and the companies participating in The Energy Report. We encourage you to visit the company's web site for updates.
"What We Like about Mega Uranium!
- Uranium projects on 5 continents
- Production planned by 2011
- Strategic MOU with Japanese nuclear power companies
- $22M portfolio of investments in junior uranium companies
- $33M in Cash and A+ Bonds
- Powerful management team lead by Sheldon Inwentash" Read Full Article
- Uranium Investing News (06/03/09)
"TGR: Is Mega Uranium on your coverage list?
ST: Yes, it's on my coverage list. Mega has the Lake Maitland Project in Western Australia (WA).
TGR: Are mines just coming into production this year, or is there a delay while they get their permits and start up? I'm thinking about Mega, which you were referring to earlier.
ST: Mega is a while off yet—it will be 2012. . .I'd like to talk a bit more about Mega before moving on to other companies. It could potentially be the first new uranium mine in Western Australia. We recently visited the site and were impressed by the potential for lower operating and capital costs. One of the most positive things about Mega is that the Japanese are looking to take a 35% stake in the Lake Maitland project and that's for $49 million U.S. The capital costs of the project are around $85.1mn; so, effectively, with that $49 and the cash position of Mega, they could virtually afford to develop this project. This is the key focus for them and they're spending around $20 million on the project this year to bring it up to do the definitive feasibility study, which is due in Q1 of 2010.
The other thing that could come into play is consolidation in the region because there's a number of other uranium hopefuls in the region. BHP's Yeelirrie is in there—the largest undeveloped uranium deposit in Western Australia. I think there are some opportunities around for Mega, especially if they're the first mover in the region. They may be able to process other deposits around the area. Longer term, they've got a couple of projects in Queensland if the government decides to change their anti-uranium stance. We think they will in the next 12 to 24 months; we're saying more longer term."
- The Energy Report interview with Simon Tonkin (05/21/09)
"We are adding Mega Uranium to our developers group. The company is aiming to mature its principal Australian asset, the Lake Maitland Project in Western Australia, into production by Q4/11. Mega Uranium has a portfolio of uranium projects on the Australian continent that complement Lake Maitland, where the second most ready to forward into development is the Ben Lomond uranium deposit (National Instrument 43-101 resources containing 10.7 million pounds of U308 at 0.25%) in Queensland.
In total, the company holds a collection of National Instrument 43-101 compliant uranium resources in Australia that contain a total of 47.1 million pounds of U308. Other than the Australian assets, Mega Uranium has a complement of uranium assets with exploration and resource potential across North America (Canada) and South America (Argentina), as well as in Africa (Columbia) and Asia (Mongolia).
With cash and marketable securities valued at $40 million, ample funds exist to finance the company's exploration/development budget of C$15 million during 2009. Mega outperformed the Haywood Developers Index (HDI) and the uranium price on a 90-day basis."
-CHRIS THOMPSON, HAYWOOD SECURITIES (05/04/09)
"Mega Uranium has taken a huge stride forward in becoming a prominent uranium producer in Australia. Having built a portfolio of uranium assets globally in the past 5 years mainly through the acquisition of companies in Australia and Canada, the company is now set to take advantage of recent regulatory changes that will see them move towards development of their Lake Maitland property in Western Australia.
Mega holds interests in around 20,000 sq kms of ground in Queensland, South Australia, Northern Territory and Western Australia. The ground contains a total of 47.1mln lbs of U3O8, the bulk of which is contained in Lake Maitland (23.7Mlbs) and the two Queensland deposits Ben Lomond (10.7Mlbs) and Maureen (6.3Mlbs). Prefeasibility and feasibility studies are presently underway on both Lake Maitland and Ben Lomond with a view to bringing them into production in 2011/13.
Mega has entered into a MOU to sell 35% of its Lake Maitland project in Western Australia for US$49mln to Japan Australia Uranium Resource Development Co. Ltd (JAURD) and Itochu Corporation. . .
Mega Uranium is now at the point where they are set to move from explorer to developer. This step marks a very important development of the uranium mining sector in Western Australia and potentially Queensland.
The intention to fund the Lake Maitland development from the JAURD US$49mln speaks volumes for the management of the group and the robust nature of the project.
As a well-funded player in the sector in Australia, and with a history of growth through acquisitions of companies and resources, Mega looks set to be an active participant in any rationalization amongst junior explorers.
We would contend that Mega represents one of the best pure uranium plays in the market that has a total focus on the development and mining of uranium assets. As the project at Lake Maitland moves through 2009 we would continue to look for more positive delineation of the mineable ore body and further major progression through the regulatory and technical aspects of project design and construction."
-DAVID LEDGER, BLIGH CAPITAL (04/24/09)
"Following the recent reversal of the uranium mining ban in Western Australia, Mega Uranium's flagship Lake Maitland project has the potential to be the first of a new generation of uranium mines in the state. We recently visited the Lake Maitland project and were impressed by its potential for low operating and capital costs.
Findings from our recent site visit to the Lake Maitland project suggest that Mega Uranium has a good opportunity to become the next uranium miner in Western Australia. The company has the opportunity to develop the Lake Maitland project into an operating uranium mine with low operating and capital costs by 2012. The entry of the Japanese syndicate, JAURD, for 35% of the project provides further capital and confidence that the project can move toward production by 2012. Further, the company has a number of prospective exploration assets that could realize additional value.