Virginia Uranium Ltd., Santoy close merger

By John Crane

Published: July 22, 2009

The company that provides financing for the proposed Coles Hill uranium project closed its merger Tuesday with Canada-based Santoy Resources Ltd.

Virginia Uranium Ltd. and Santoy will be known as Virginia Energy Resources, Inc., effective Friday and will be publicly traded on the Toronto Stock Exchange, said Norm Reynolds, who will be chief executive officer of the combined company.

“It will offer us a public vehicle to raise money,” Reynolds said Tuesday of the merger.

Santoy trades on the Toronto Stock Exchange under the symbol SAN.V. The symbol will change to VAE to represent Virginia Energy Resources.

Virginia Uranium Ltd. had been the private funding arm for Virginia Uranium, Inc.’s proposed project at Coles Hill, where VUI hopes to mine and mill a 119-million pound uranium ore deposit about six miles northeast of Chatham. Virginia has had a moratorium on uranium mining since 1982. Virginia Energy Resources will provide funding for VUI.

“We are pleased to see the merger of these two companies come to fruition,” said VUI Chairman Walter Coles Sr. in a prepared statement. “The effect of the merger is that Virginia Uranium, Inc. will have increased resources and expertise dedicated to our mission of developing our project in a manner that technologically sound and environmentally responsible.”

Reynolds said the merger will also expand awareness in the utilities industry and other industries that Coles Hill “is a real project.” Reynolds is also CEO and president of VUI.

Under the merger, Virginia Energy Resources holds 20.8 percent ownership in Virginia Uranium Holdings, Inc., which owns 100 percent of VUI. Before the merger, the Coles and Bowen families retained and 73.5 percent ownership in Virginia Uranium Holdings, Inc. Their share is now 70.4 percent.

VUI holds the rights to develop and operate the mining and milling of uranium at Coles Hill.

• Contact Crane at jcrane@registerbee.comor (434) 791-7987.

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