Vancouver's Uranium One Inc. (TSX:UUU) has decided to shut down work on its Dominion Uranium Project located 150 kilometres southwest of Johannesburg, South Africa.
The continuing decline of uranium and significant inflation-related increases in project costs were cited as the main reasons for the shelving of the project.
The company said the project requires much more capital and a sustained recovery in the price of uranium to be economically viable. While the price of uranium is expected to be attractive in the long-term, the company is not able to raise the necessary capital to develop the project given the current credit and stock market conditions.
The company is now looking to sell the project and explore other strategic alternatives.
Uranium One's share price range during the past week: between $0.85 and $1.13; 52-week high: $12.95; 52-week low: $0.80.