NU. Nufcor

    RNS Number : 1111F
  Nufcor Uranium Limited
  06 October 2008
   

    THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, SOUTH
AFRICA, AUSTRALIA, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.  THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES IN THE
UNITED STATES, CANADA, SOUTH AFRICA, AUSTRALIA, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.


    NUFCOR URANIUM LIMITED
    EQUITY OFFERING WITHDRAWN, CONTINUING WITH TSX LISTING, AND ANNOUNCEMENT OF SALE OF URANIUM
    NUL announced today that its directors have decided not to proceed with the previously announced proposed equity offering, on account of
adverse general market conditions, recent volatility of equity markets and the fact that its ordinary shares are currently trading at a
discount to NAV.  The preliminary long form prospectus which NUL had filed in each of the territories and provinces of Canada for the
purpose of the Offering has accordingly been withdrawn.
    PROPOSED TSX LISTING
    Despite the withdrawal of the preliminary prospectus, the company is proceeding separately with its application to the Toronto Stock
Exchange ("TSX") and has obtained conditional listing approval for its shares to be listed on the TSX, subject to fulfilling customary
listing conditions.  
    SALE OF URANIUM
    On 21 July 2008 NUL announced that it proposed to acquire 237,000 kg of uranium as natural uranium hexafluoride ("UF6") for US$38.9
million for payment and delivery in the fourth quarter of 2008. NUL indicated at that time that if the Offering did not proceed, it may seek
to fund this purchase through the sale of some of its existing uranium assets, and, if necessary, by the arrangement of suitable credit
facilities.

    NUL has entered into provisional agreements to sell a total of 475,000 lbs of triuranium octoxide ("U3O8") and has contracted to sell
25,000 kgU of UF6 for a total of US$29.3 million for payment and delivery in the fourth quarter of 2008.   The sales are equivalent to
approximately 540,321 lbs of U3O8 at an inferred price of US$53.81/lb U3O8 (assuming a conversion service price of $9.50/kg). The
provisional agreements are conditional on the agreement and execution of formal written contracts.  

    In addition, NUL is currently seeking to sell a further 100,000 lbs of U3O8. The directors of NUL are confident that it will be able to
do so.

    On successful execution and performance of the provisional agreements and contracted agreement, NUL's investment portfolio will consist
of the following physical Uranium assets:
                                                        Weighted 
                                         Quantity      Average Cost

 Investments:
 Physical uranium holdings - U3O8      1,825,000 lbs   US$85,986,065
 Physical uranium holdings - UF6         412,000 kgU   US$95,716,565
                                                      US$181,702,630

 Average purchase cost per lb of U3O8       US$47.12

 Average purchase cost per kgU of UF6  US$232.32

    Kelvin Williams, chairman commented: 
    "It is the Board's objective to improve the liquidity in NUL's shares and thereby increase their alignment with the underlying uranium
price.  We believe listing on the Toronto Stock Exchange, which will allow NUL's shares to be fully fungible between AIM and TSX, will help
to deliver this objective. We are disappointed that current market conditions are not conducive to an offering of NUL's shares."

    ENQUIRIES:

    Nufcor Uranium Limited
    Kelvin Williams                                   +27 827 880 094
    (Chairman)

    Nufcor Capital Limited
    Nick Hill                                              +44 207 184 5000
    Rian Raghavjee 

    Canaccord Capital Corporation, Financial Adviser and Joint Broker
    Mike Jones                                        +44 207 050 6500
    Warren Pimm

    Deutsche Bank AG, Nominated Adviser and Joint Broker
    Rupert Green                                    +44 207 545 8000

    Smithfield
    Rupert Trefgarne                              +44 207 360 4900

    This announcement is for information only and does not constitute an offer or invitation to underwrite, subscribe for or otherwise
acquire or dispose of any securities or investment advice in any jurisdiction. Past performance is no guide to future performance. Persons
needing advice should consult an independent financial adviser.

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCUOUBRWSRRRAA

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