After agreeing to a $12 million funding deal, Andrew ‘Twiggy’ Forrest is now majority shareholder of junior uranium company Energy and Minerals Australia.
The deal comes just days after Forrest bought Harvey Beef for a reported $40 million.
The uranium buy came as a surprise to the industry, with spot prices yet to recover to pre-Fukushima levels and dropping as low as US$30.75.
However, with EMA headed by former Fortescue Metals Group executive Julian Tapp and ex BC Iron boss Mike Young, Forrest said the money was a “vote of confidence” in EMA’s team.
EMA owns the Mulga Rock deposits located 250km east-northeast of Kalgoorlie, which comprise of four separate deposits; Ambassador, Emperor ,Shogun and Princess.
The company is aiming to produce first yellow cake in 2016, and Young told The Australian Forrest was taking a long term view that the uranium market would recover, making the project a viable.
He’s backing me and Julian, that was his primary driver,” Young said.
“And he can afford to take a long view, which is what you need to do with uranium.”
EMA has also reached an agreement with lenders Acorn Capital, Macquarie Bank and Element Resources Fund to remove $24.5 million of debt.
The deal sees Macquarie emerge with a21 per cent of EMA, and Acorn holding 23.2 per cent.