acquires PFN uranium logging technology

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    Monday, January 25, 2010

    Uranium Exploration Australia pens deal to acquire PFN uranium logging technology

    Uranium Exploration Australia (ASX: UXA) has completed the purchase of 100% of the assets and intellectual property of the Prompt Fission Neutron borehole logging tool manufacturing and service business from GeoInstruments situated in the United States.

    The purchase further strengthens UXAs fully-owned borehole logging business, Geoscience Associated Australia, which is the sole Australian licensed distributor and servicer of PFN technology.

    PFN technology is becoming increasingly utilised within the uranium mining and exploration industries, and played a significant role in the discoveries of two of Australias largest uranium deposits, the Beverley mine and Four Mile deposits in South Australia.

    Managing Director Russell Penney said the purchase of the PFN business represented a significant growth step for GAA enabling it to expand its PFN logging and service business beyond Australia.

    UXAs understanding of the PFN technology is second to none, and our cornerstone position within this exciting exploration technology sector provides us with a foundation for substantial growth for years to come," Mr Penney said.

    "With GAA and the PFN technology UXA is now the owner of two profitable cash-flow businesses.

    Under the terms of the agreement signed with GIIs President Jim Turner, GeoInstruments International, a wholly owned subsidiary of UXA, will pay the total cash price of US$1.2 million for the intellectual property, a number of completed and partially completed PFN tools and a fully equipped borehole logging truck. The payment will be made in two tranches.

    The PFN borehole logging tool is unique in that it directly measures the content of uranium in boreholes, overcoming the problem of dis-equilibrium which limits the interpretation of uranium concentrations using gamma logging tools. PFN tools are being extensively used in Australia and the US to establish uranium grades at a number of uranium mines and exploration projects.

    The technology was originally developed in the US and has been extensively improved and streamlined for day to day borehole logging application by Jim Turner and GeoInstruments Inc in the US.

    In 2009 UXA completed the purchase of GAA. Under UXAs ownership, GAA continues to provide a full range of commercial wire-line logging services to the mining and exploration sectors, principally focused on uranium, coal and coal seam gas, throughout Australia.

    Prior to the PFN technology purchase, GAA was the sole distributor for PFN technology in Australia and the only provider of commercial PFN logging services in Australia. GAA has a team of highly skilled professionals with a broad range of borehole logging expertise. The borehole logging business is held as a 100% owned subsidiary company and operates independently from UXAs exploration activities with regards to the preservation of confidential information of GAAs clients.

    GAA will now be able to implement a growth strategy to expand internationally as well as to secure growing opportunities for PFN business in Australia.

    http://www.proactiveinvestors.com.au/companies/news/4475/uranium-exploration-australia-pens-deal-to-acquire-pfn-uranium-logging-technology-4475.html

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    Good stock, but I believe their work is secondary in nature(I mean Survey,Dataloggin etc)

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