Uranium Energy Corp. reported the acquisition of a South American company that holds prospecting permits to a mining property in Paraguay.
Uranium Energy issued 225,000 shares of common stock to the seller and is obligated to pay a royalty of 1.5% on the future gross sales of any uranium that is discovered on the property.
Uranium Energy said that the permits cover 247,000 acres located in Coronel Oviedo, Paraguay, and were previously explored by Anschutz Corporation and Crescent Resources Corp. from 1983 through 2006.
Uranium Energy has access to the drilling samples done by these two companies and reported that 31 out of 52 drill holes showed uranium values. These uranium traces were discovered at depths of 450 feet and 750 feet.
Uranium Energy believes that the properties acquired are prospective for uranium deposits similar to those found in the United States and other areas, and that these deposits can be commercially produced using in situ recovery methods.
Uranium Energy plans to start drilling at the Coronel Oviedo Property in the third quarter of 2011, and will limit the drilling to 10,000 meters in the initial program.
For more information on the company, go to www.uraniumenergy.com