Energy Metals expands its U.S. uranium holdings

Vancouver – Uranium hunter Energy Metals (EMC-V), previously Clan Resources, has set its sights on Wyoming by acquiring a large portfolio of advanced-stage projects throughout the state.

The acquisition gives the company a significant footprint in all of the major uranium districts of Wyoming, specifically the Gas Hills, Powder River Basin, Shirley Basin, Ketchum Buttes and Great Divide areas. In total, the land package of 29 Wyoming uranium mining leases encompasses almost 5,000 hectares, plus two claim blocks in the Powder River Basin and 6 claim groups in the state’s Great Divide district.

In consideration, Energy Metals is issuing 1.5 million shares to William Sheriff, the property vendor, who is already a major shareholder and also president of the company’s U.S. subsidiary.

Extensive drilling has been conducted on a number of claim blocks, some having preliminary, non-NI43-101 compliant resource estimates. Cumulatively, the Wyoming claim blocks have over 12 million pounds of contained U3O8 outlined by a number of previous operators.

Wyoming has been the largest uranium producer in the U.S. for more than a decade, although output had been slumping due to weak price for the metal prior to its late-2003 rally. The vast majority of production, over 90%, comes from in-situ leaching (ISL) mining methods.

ISL is accomplished using wells that inject a leaching solution which dissolves some of the uranium mineralization within porous rock units, typically sandstones, and then extracts the charged solution for recovery of the metal. This method of mining can target deposits with much lower grades than conventionally mined projects.

Energy Metals also recently closed a $3.6-million financing, consisting of 2.23-million units (comprised of a share plus a half-warrant) at $1.60 apiece. Sprott Asset Management subscribed for 2 million of the units.

The company has 18.3 million shares outstanding, giving the issue a market capitalization of about $47 million given its recent trading price of $2.55 per share.