The AIM-listed, uranium explorer, Brinkley Mining (BRM.L) moved higher to 6.50p adding 2.30p since previous closing. The company said it has received a bid approach, which initiated a surge in the stock price."The company notes the movement in its share price today and confirms that it has received an approach which might lead to an offer being made for its shares," the company commented in a brief statement.
A further announcement would be made if a firm proposal was received or if the talks were terminated.
Overall, the stock price saw a huge fall over a year
Mining group has struggled in recent months fears over its uranium mining production plans in the Democratic Republic of Congo (DRC), as the government reviews a number of mining licenses in the area.
As at 31 January, Brinkley Mining had approximately $22m cash in hand. Brinkley Mining has assets in South Africa and the Democratic Republic of Congo (DRC).
However, the government of the DRC said in October last year that it would be stringent on what it called a “questionable” mining joint venture between Brinkley Mining and the country’s Atomic Energy Authority.
Brinkley Mining PLC said Deutsche Bank AG has raised its stake in the company to 53.7 million shares or 15.08% of the issued capital, from 14.02%, following recent share purchases.
Brinkley Mining also said UBS Investment Bank now holds 26.8 mln shares, or 7.52% of the issued capital.
Earlier this month, Brinkley Mining said the Waterval project in South Africa reported an indicated and inferred resource of 933,800 tonnes at a grade of 0.35 kilogram/tonne uranium oxide.
Professor Judith Kinnaird of the University of the Witwatersrand (Wits), who chaired the International Quality and Production Centre uranium conference, in Johannesburg, assumes that the uranium price must still rise significantly higher for it to be equivalent, in real terms, to what it was two decades ago.
She thinks, it should be selling at $120/lb, she says, and not the $71/lb that it is trading now. Kinnaird calculates this price on the grounds of strongly growing demand.
Referencewww.brinkley-mining.com
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