Months ago I bought a stock called
Union Resources at 15c. The company has been languishing at 13-15c recently....that was until today when the
company announced that a British company had acquired a 47% interest in the Sandpipers offshore Namibian phosphate deposit for $25mil. Maybe this is a shelf company for Omanian state enterprise...not sure. This values Union Resources' (UCL.ASX) stake at the same $25mil, implying UCL is about half its current value. In a better market, you might even place a higher value. You would expect the buyer to have adopted a 'forward-looking' valuation for their stake, so this augers well for UCL, which also is trying to retain its 34% stake in the Mehiabhbad zinc-lead project in Iran....one of the largest undeveloped deposits.
We can expect some further developments with this project....will UCL stay in the project? This is a world class project. The question is whether the company has other projects on its radar.
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