Mega Uranium Ltd.

"Toronto-based Mega Uranium on Tuesday reported net income of C$21.5-million for the year ended September 30, up from a net loss of C$195.5-million in the previous 12 months.

In the prior period, the company recorded write-downs of C$233.4-million, compared with just C$6.3-million this year.

During the 2009 financial year, the firm had income from financial and trading activities for the year of C$6.7-million, most of which related to unrealized gains on investments in public companies.

Mega is exploring for uranium in Australia, Argentina, Colombia and Cameroon. During the year, the company agreed to sell a 30% stake in its Lake Maitland project, in Western Australia, to the Japan Australia Resources Development Company, as well as 5% to ITOCHU Corporation.

The company ended its financial year with cash, cash equivalents and marketable securities equal to C$22.3-million.

However, it has since raised another C$50-million in a financing.

'During fiscal 2009, we concentrated our exploration activities on those properties that we felt represented the best opportunities for the company in 2010, and secured an excellent partner for our Lake Maitland project in Western Australia,' said CEO Sheldon Inwentash.

'Having raised C$50-million just after the 2009 year-end, we are very well financed and now look forward to advancing our Lake Maitland project and continuing our focused exploration activities.'"
    -   Mining Weekly, Liezel Hill (12/22/09)

"I think that Mega Uranium looks interesting right now. The company just did a financing, which has depressed the stock. Mega's strategic partnership with Japan Australia Uranium Resources Development Co. Ltd. and ITOCHU, the Japanese syndicate, is a very promising development for the company."
    -   The Energy Report Interview with James Passin (11/19/09)

"Mega Uranium (MGA-T) this week signed a Memorandum of Understanding (MOU) for infrastructure and services sharing with Navigator Resources (NAV-AU). This is a step toward their joint interest in negotiating for the shared use of some of Navigator's facilities at the Bronzewing gold project facilities. Navigator's Bronzewing project adjoins Mega's Lake Maitland uranium project in the goldfields region of Western Australia. Navigator's infrastructure at Bronzewing includes a certifiable airstrip, power station and fuel farm, water supply infrastructure and access roads, 280-person village/camp and rec facilities, surface workshops and offices."
    -GEORDIE MARK,   HAYWOOD SECURITIES (11/18/09)

"Western Australia Department of Mines and Petroleum has issues a Mining Lease to Mega's wholly owned subsidiary Redport Exploration Pt. Ltd. (65% owner/operator) for the Lake Maitland uranium project.

Mining Lease: The 65%-owned Lake Maitland project has been issued a mining lease. This represents the first such lease to be issued since the ban on uranium mining in Western Australia was lifted last November. Mega acquired the Lake Maitland property by way of acquisition of Redport Ltd in 2006.

Development Progress: A Definitive Feasibility Study is underway, expected to be completed in June 2010, which will include metallurgical test work results based on trenching and bulk sampling, water studies and other site work. Mega aims to commence production in 2012. We model 2012 production of ~0.35 Mlb U308 ramping up to ~1.2 Mlb U308 in 2013 with cast costs in the US$18–$21-1 range.

$50 Million Equity Financing: On October 26th, Mega raised ~$50.0 million via the sale of 58,824,000 "units" comprised of 1 common share, and one half of one common share purchase warrant. Each unit had an issue price of $0.85, and each full warrant carries an exercise price of $1.25, expiring five years from date of close, subject to early expiry after 10/26/2012, under certain market conditions."
    -GEORDIE MARK,   HAYWOOD SECURITIES (11/06/09)

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