Toro Energy secures $10 million to help build uranium mine

The company vying to build WA's first uranium mine has secured $10 million to help make it happen.

Toro Energy announced global resources investor Sentient Group would buy 125 shares in the company for a total cash injection of $10 million.

Negotiations are also underway which will see Sentient spend a further $10 million in return for 2.5 per cent on the revenue Toro receives for future production.

Toro also said it will acquire a 19.8 per cent equity interest held by Sentient in uranium explorer Strateco Resources.

The deal is a major boost for Toro which has been looking to find partners to help build the $269 million Wiluna mine for some time.

The Wiluna mine will process 1.3 million tonnes of ore annually, and produce around 820 tonnes of uranium oxide concentrate.

The company's position was strengthened last year when it bought two more uranium deposits that it wants to add to the mine through an integrated plan.

Uranium prices have struggled to pick up since the Fukushima tragedy, and are trading at around $36 a pound. 

However most predict that by the time Wiluna is producing in a few years, a supply gap in the market will help to push prices into a viable $60 a pound range.

Toro's managing director Vanessa Guthrie said she was pleased the Wiluna project was gaining momentum.

 “This should enables us to focus on bringing Wiluna into production into the expected emerging market supply gap and promoting the potential of the Wiluna uranium province, while building an initial global asset base that maximises for our shareholders the upside potential of an improving uranium price," Guthrie said.

Sentient said it looked forward to helping assist Toro bring Wiluna to the final stages of feasibility over the coming years. 

 

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