Black Range Minerals (ASX: BLR) has secured a $2 million loan facility from a major shareholder to complete construction of the semi-commercial scale Ablation Unit and advance development of its Hansen/Taylor Ranch Uranium Project in Colorado.
The unsecured convertible loan facility is repayable in cash or shares at $0.01 per share, offering the company flexibility to minimise dilution and to take advantage of any future share price appreciation.
Construction of the 5 tonne per hour Ablation Unit is progressing well. On completion, the unit will allow the Ablation joint venture to undertake large-scale tests on samples of ore from deposits that are potentially amenable to Ablation.
This will demonstrate the economic viability of the technology.
Infrastructure is also being installed at the Ablation JV's manufacturing facility in Wyoming, so ore can be transported from multiple deposits to the facility to streamline initial testwork with the Ablation Unit.
Black Range has also executed an agreement giving it the right to a 70% revenue interest from the October uranium stockpile in Colorado, which is expected to be one of the first sources of ore for initial trials with the 5tph Ablation Unit.
The Hansen/Taylor Ranch Uranium Project is located in Colorado, U.S., and hosts JORC Resources of 90.9Mlbs U3O8 at 600ppm.
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