Wealth raises $6 million for Argentina uranium

Vancouver – News that Wealth Minerals (WML-V) has raised $6 million to finance exploration at the companys uranium exploration projects in Argentina, sparked active trading in the stock.

Vancouver-based Wealth said the money was raised via a bought deal private placement of three million units priced at $2 each. Each unit consists of one common share of the company and one half of a transferable common share purchase warrant.

Each full warrant is gives the holder the option to acquire one additional share for a 2-year period from the date of closing of the financing at an exercise price of $2.50.

However, Wealth can accelerate the expiry date of the warrants if the average trading price of its shares exceeds $4 on the TSX Venture Exchange for a certain specified period after the transaction closes.

The underwriters have been granted an over-allotment option to purchase up to 500,000 additional units for a period of 48 hours prior to closing, potentially raising proceeds of the financing by $1 million.

The announcement sent Wealth shares up 46 or 21% to $2.65 on the TSX Venture Exchange, February 8 on volume of 115,300.

Two weeks ago the company said it had discovered a new uranium district at its wholly-owned Diamante-Los Patos property in northwest Argentina.

It said initial trenching has defined a minimum area of 11 square kilometres in four zones, which contain highly anomalous uranium mineralization. Of the 788 rock samples collected to date, Wealth said the top 15% average 5.87 pounds per tonne uranium oxide.

“The discovery of a new uranium district with the potential for outlining one or more, bulk mineable uranium deposits is very exciting,” said Wealth Chief Executive officer Henk Van Alphen.

“Since the area is essentially flat, leachable mineralization starts at surface and access and infrastructure are reasonable; mining costs should be in the lower quartile,” he said.

In light of the encouraging results, the company has staked additional ground surrounding and adjacent to the newly discovered Southwest zone, where trenching work cut two three-metre-wide zones averaging 0.29 pound per ton uranium oxide and 0.43 pound per respectively.