October 13, 2007 Uranium spot price finds bottom?     Publisher: U3O8.biz     Author: Luke Brocki
	Uranium spot price held its ground at US$75 this week and analysts speculate this may be the price bottom. Prices remain volatile, but the fluctuations don't indicate further price drops. Trading volumes are steadily increasing as courageous speculators return to a market they hastily abandoned during last summer's price correction. Utilities are still in denial about their need for uranium and remain reluctant to buy the metal at current prices, but investors won't have to wait long; after all, the stockpiles that utilities have been depleting since last summer's price scare are poised to run out soon. When that happens, prices are expected to rise as demand starts to creep up on supply. The Resource World composite uranium stock index, an index based on the performance of nearly 100 uranium companies, is nearing never-before-seen heights. On Friday, the index rose 25.89 points, or 2.1 per cent, to 1,269.58. It broke the 1,200-point threshold earlier this month, having done so again last summer, when uranium's spot price was a record US$138 a pound. Friday saw confirmation of a South Korean consortium's plans to invest millions in a Canadian uranium project. CanAlaska Uranium Ltd. has executed definitive agreements for investment by a consortium led by Hanwha Corporation. The money will go toward uranium exploration of CanAlaska's Cree East project in Saskatchewan. Nearly 40 per cent of South Korea's domestically generated energy comes in the form of nuclear power. CanAlaska Uranium Ltd. gained 4.5 cents, or 11.5 per cent, to close at 43.5 cents. Crosshair Exploration & Mining Corp. gained 24 cents, or nearly 12 per cent, to close at $2.29, after getting a nod from Brien Lundin in the September 2007 edition of the Gold Newsletter. Pinetree Capital Ltd., an investment, financial advisory and merchant banking firm, has increased the size of a recently announced private placement by 4.5 million units to 12.5 million units. Under the financing agreement, Pinetree will sell the units, each comprised of one common share of the company and one-half of one common share purchase warrant, for $5.25 apiece. The company gained 37 cents, or 7.7 per cent, to close Friday at $5.15. Vancouver-based Apoquindo Minerals Inc. also increased the size of its private placement by 1.2 million. The company now plans to release 5.2 million common shares at 75 cents apiece, for gross proceeds of about $3.9 million. The news boosted Apoquindo stock 18 cents, or 19.6 per cent, to $1.10. Uranium Resources Inc. (URI) announced an agreement with giant BHP Billiton on Friday to acquire a mill site and uranium properties holding 20 million pounds U3O8 for $110 million in cash. URI stock rose $1.42, or nearly 16 per cent, to close at $10.45. Several companies continued to enjoy stock appreciation after releasing news earlier in the week: Forum Uranium Corp. gained five cents, or 11.6 per cent, to 48 cents, following Wednesday's announcement of drill targets at its Key Lake Road project; Pencari Mining Corp. was up six cents, or 14.3 per cent, to 48 cents, after tracing a 3,000-metre anomaly during a preliminary recon of its Ambatofotsy uranium property in Madagascar on Wednesday; and Uravan Minerals Inc. was up 10 cents, or 12 per cent, to 93 cents, after Tuesday's appointment of James Marlatt as its new president, chief operation officer and director. Finally, several companies gained ground in the absence of news releases: Red Hill Energy Inc. was up eight cents, or 10 per cent, to 82 cents and Crescent Resources Corp. was also up eight cents, or 20.5 per cent, to 47 cents.
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