Spot uranium price climbs with Nufcor raising cash
LONDON, July 15 (Reuters) - The spot price of uranium, used to fuel the world's nuclear plants, rose $4 to $64 per pound this week, according to the web site of Ux Consulting, a leading publisher of uranium prices and forecasts.
Traders said the price UX-U3O8-SPT was supported by London-listed Nufcor Uranium Ltd NU.L currently raising money to buy uranium by offering shares during a road show in Canada.
"The only true demand currently is Nufcor, they are on their road show so let's see what they come back with," a uranium trader said.
The North American road show would finish on Thursday, traders said.
The holding company owns around 2.3 million pounds of uranium stocks for investment purposes and at the end of June it said it would raise more cash to up its holding.
Traders said the firm was looking to raise around $75 million, buying some 1 to 1.4 million pounds of uranium.
"But they have to convince their shareholders to collect the money ... the amount is subject to fund raising," the trader said.
At least 90 percent of the net proceeds of the offering would be used to buy uranium, traders said, and an application had been made to list the shares on the Toronto Stock Exchange.
The market is still waiting for the exact amount and the offer price of the shares.
Nufcor Uranium was not immediately available for comment.
The two largest funds holding uranium are Canada's Uranium Participation Corp. (UPC) (U.TO) and Nufcor -- which together own around 8 million pounds of uranium.
(Reporting by Anna Stablum; editing by Nigel Hunt)
