Blue Sky Uranium (BSK.V) has announced that Areva (EPA:AREVA) will fund a C$2M exploration budget on Blue Sky’s properties in Argentina’s Chubut and Rio Negro provinces.
Areva will spend 2M this year as part of the earn-in agreement with Blue Sky, whereby Areva can earn 51% of one or two projects, after spending $6M in 3 years ($2M in 2013 and $3M-$4M in 2014 if Areva wants one or two projects).
We consider this exploration program very beneficial for Blue Sky, as Areva will spend approximately Blue Sky’s market cap on exploration this year alone. We are obviously disappointed with the considerable decline in share price since the private placement of December 2011, but we hope Sean Hurd can turn the tide this year.
Disclosure: The author holds a long position in Blue Sky Uranium Corp. They are not a sponsor, but Golden Arrow Resources which is also part of the Grosso Group, is. Please see our disclaimer for current positions.