Uranium Investing News

Red Rock Resources reports that it has subscribed for 9,898,000 Units at a price of C$0.10 each in Cue Resources Ltd.

Each Unit comprises one ordinary Cue share and one warrant entitling the holder to subscribe for one additional Cue share at a price of C$0.15 for a period of two years from November 1, 2009.  Both the shares and warrants are subject to a four month hold period, and the warrants will carry an acceleration provision for the mandatory exercise or lapse of the warrants in the event that the shares trade at a price of more than C$0.30 for a period of over 20 trading days.

 Red Rock’s Chairman Andrew Bell said:

“The investment in Cue greatly enhances Red Rock’s uranium portfolio at low cost.  Cue’s uranium assets include an established Resource with upside potential, in a country with infrastructure and a positive attitude to mining. This investment is the culmination of a ten month disciplined search process conducted by the former and the current CEOs of our 27% owned uranium associate Resource Star Ltd, currently re-listing on the ASX, both of whom are experienced ex-Western Mining uranium geologists. We screened 190 companies and projects worldwide that appeared to meet our investment criteria, and refined our search in stages until we arrived at our top three value propositions. Cue stood out.

A year ago we had no projects with established Resource figures. As a result of opportunities thrown up by the global crisis of late 2008/early 2009, we are now participating in projects with JORC or 43-101 Resources in all three of our areas of operation: iron in the Yilgarn through Jupiter Mines; gold through our farm-in to the Mid-Migori project in Kenya; and now uranium.”

For complete details of this press release, click this link.

To view  Cue Resources’ company profile, click here.

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