* Raises from "market perform" on option to buy Mantra shrs
* Cuts price target to C$5.70 from C$6
Dec 20 Raymond James upgraded Uranium One Inc
UUU.TO to "outperform" from "market perform," on the back of
the uranium miner's option to buy all shares of Mantra
Resources Ltd MRU.AX.
Last week, Russia's ARMZ said it would buy Mantra Resources
for A$1.2 billion ($1.19 billion). Subsequently, Uranium One
said it had the option to buy the shares to be acquired by
ARMZ, its largest shareholder, for ARMZ's buy price plus
additional expenditures. [ID:nLDE6BE05K]
A pre-feasibility study on Mantra's flagship Mkuju River
project defined a conventional open pit operation producing 3.7
million pounds a year over a 12-year life, the brokerage said
in a note to clients.
"Uranium One believes both the resource size and production
rate can be substantially increased," Raymond James analysts
said in a note to clients, cutting price target on the
company's stock to C$5.70 from C$6.
The Vancouver-based company's shares, which have lost 4
percent in value since posting third-quarter results in
November, rose 6 percent to C$4.64 on Monday morning on the
Toronto Stock Exchange.
($1=1.012 Australian Dollar)
(Reporting by Isheeta Sanghi in Bangalore; Editing by Joyjeet