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Operator Of Proposed SD Uranium Mine To Merge

February 28, 2014, 6:38 PM

SPEARFISH, SD -

The company that would operate a proposed uranium mine in southwest South Dakota has agreed to merge with a Hong Kong-based firm.

Powertech Uranium Corp. plans to merge with Azarga Resources Limited.

The newspaper reports the companies would create Azarga Uranium Corp., a Canada-based mining company with eight proposed uranium mine projects around the world.

Powertech has told American authorities it plans to use a method that would pump groundwater into the underground ore deposits to dissolve the uranium. The water would be pumped back out, where the uranium would be extracted and sold to nuclear power plants.

Azarga has been Powertech's largest shareholder since July 2013.

The U.S. Nuclear Regulatory Commission has found no environmental impacts that would preclude licensing the mine.

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