The continuing saga of Powertech Uranium

 

Penny Powertech stocks

“Strategic investors” recently bought up $1.5 million worth of Powertech stock, which has recently been trading for a mere $0.10 a share.

Powertech Exposed is a great source of information about the Canadian refrigerator-turned-uranium company that’s looking to suck up West River’s water and cart the profits from South Dakota’s mineral wealth clean out of the state. They recently reported that, quite apart from its potential environmental impacts, Powertech’s financial status should remain a source of concern for uranium opponents and boosters both:

Once again, Powertech CEO Dick Clement has saved the Canadian penny stock company from bankruptcy by convincing “strategic” investors to buy up to 15 million shares for $0.10 each, according to a February 12 news release.

The unidentified strategic investors would purchase units consisting of one common share of Powertech and one share purchase warrant. One warrant entitles the investor to purchase one additional share for $0.20 for a period of three years.

The gross proceeds of the proposed private placement are only $1.5 million, but would allow Powertech to survive for another four months, assuming a cash burn rate of $400,000 per month…

Since Powertech is in the midst of seeking multiple federal and state permits for the proposed Dewey-Burdock uranium mine, one would think that the disclosure of the potential future management of the company would be of interest to affected landowners, regulators, and investors.

But in typical fashion, Powertech has chosen to conceal the identities of the strategic investors.

If you’re going to allow a company to engage in a potentially hazardous mining project, a company that has never mined anything, let alone uranium, you want to be sure that they are at least sufficiently financially solvent to see the project through – and to cover the costs of cleanup. You want to know who will (hopefully) be held responsible in the event of a toxic leak. Powertech evidently isn’t interested in such trivialities.

If you haven’t been following the long and tortuous saga of Powertech’s attempt to mine uranium in Fall River County near Edgemont, Talli Naumann at Native Sun News provides an admirable overview of recent developments in “Clash mounts over proposed Black Hills uranium mining” – and props to her for mentioning the protesters who showed up in Hot Springs on Feb. 7 (unlike the Rapid City Journal). The date for interveners to sign on against Powertech’s large scale mining permit just passed this Tuesday, and we’re looking forward to hearings being scheduled early in March (that is, the scheduling will be done in early March – the actual hearings will take place later.

And so the struggle continues.

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About sdpeacejustice

The SD Peace & Justice Center connects a grassroots network of South Dakotans working for social justice and against violence and oppression.
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