URU Metals rallies on mining application acceptance

Investor in mineral exploration and development projects, URU Metals Ltd (LON: URU) has seen its share price rally following the acceptance of a Mining Right application submitted by its South African subsidiary, Lesego Platinum Uitloop Ltd.

The application pertains to the three prospecting rights that make up the Zebediela Project, and was accepted by the South African Department of Mineral Resources. LPU submitted the application over portions of the farms Uitloop 3 KS, Amatava 41 KS, Bloemhof 4 KS, and Piet Potgietersrust Town and Townlands 44 KS, based in the Mogalakwena local and Waterberg district Municipalities of the Limpopo Province.

Following the decision, the South African DMR will now process the application and the Company must now fulfil the regulatory requirements it has been set.

URU Metals comments

Mr. John Zorbas, CEO, stated,

“[The] acceptance of the mining right application by the DMR significantly moves the project forward in three ways: by consolidating the 3 prospecting rights that made up the Zebediela Project into one right; securing the mineral tenure of the project for a further 30 years and lastly, advances the project one step closer towards development. We remain extremely excited by the highly prospective Zebediela Project, and the acceptance of the mining right application grants us the flexibility to develop the existing nickel resource into a mine, and to continue developing the newly discovered Ni-PGE resource found adjacent to and in the footwall of the existing nickel resource.”

Investor notes

After an impressive rally, the Company’s share price dipped slightly, up 8.20% or 20.50p to 270.50p per share 30/08/19 14:38 BST. Neither a dividend yield, nor a p/e ratio are available for the Group.

Elsewhere in the mining and minerals sector, recent updates have come from; Resolute Mining Limited (LON: RSG), Bisichi Mining PLC (LON: BISI), Polymetal International Plc (LON: POLY) Cora Gold Ltd (LON: CORA), Glencore PLC (LON: GLEN), Ariana Resources plc (LON: AUU) and Bushveld Minerals Limited (LON: BMN).