Mill City Corporate Update
19.12.2013 | Marketwire
CALGARY, ALBERTA -- (Marketwired - Dec 19, 2013) - Mill City Gold Corp. (TSX VENTURE:MC) (OTCBB:MCYGF) (FRANKFURT:NJ6) ("Mill City" and/or the "Company") would like to take this opportunity to update its shareholders with respect to the Company's plans for 2014.Mill City completed a 17:1 share consolidation in June of this year followed by a private placement in November. These two events created the framework that will enable Mill City to move forward and build shareholder value.
One of the areas that management is currently considering is the uranium sector. The Company believes that global indicators are pointing to higher uranium prices for the following reasons:
- The toxic air pollution in China and India is driving demand for clean nuclear energy and rare earths.
- Oil rich countries like United Arab Emirates and Saudi Arabia are making a huge statement investing in nuclear to reduce their dependence on fossil fuels.
- Countries have recently lifted bans on uranium mining and building reactors after decades of moratoriums.
- The end of the Russian HEU (Highly Enriched Uranium) Megatons to Megawatts program in November 2013 that provided the U.S. with cheap uranium from Russian nuclear warheads for the last 20 years.
- There are more nuclear power plants under construction now than there were before Fukushima.
Management believes that the end of the Russian HEU Megatons to Megawatts program is an extremely significant event that could be the catalyst to dramatically increase demand for uranium. To cover the 24 million pound shortfall out of a total U.S. consumption of 50 million pounds will require new uranium mines.
On October 21, 2013, Britain announced it is building its first nuclear power station in a generation at a total cost of US$26 billion. Thirty to forty percent of the funding for this mega project is coming from China with the remainder coming from France.
Greenland has taken a major step in opening up its mining industry. The country's parliament voted on November 5, 2013 to end a decades-long ban on mining for radioactive materials. The decision clears the way for uranium and rare earths mining.
China is on track to build up to 100 nuclear reactors by 2030. It already has 27 of those under construction, as a path away from the polluting, CO2-emitting coal-fired plants that supply 80 percent of its electricity. The country looks likely to vault into the top position of nuclear generating nations - 100 new reactors would be nearly a quarter of the 435 nuclear power reactors that are commercially generating electricity in the world today.
Uranium is considered "the New Green Metal". Nuclear power plants produce electricity with only a minute amount of greenhouse gases. With the current worldwide emphasis on reducing carbon emissions, environmental, scientific, and political communities are supporting expansion of nuclear power production as a green technology.
With demand continuing to grow in nations such as China and India over the next decade, and with more regulations being applied against traditional power sources such as coal, Mill City sees uranium prices moving up. Now is the time for our Company to consider building an investment strategy into this energy source for our shareholders.
Management is currently examining a number of opportunities in this sector and will keep shareholders apprised.
For further information please visit the Company's website at www.millcitygold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
James R. Brown
Chairman, President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact
Mill City Gold Corp.
James R. Brown, Chairman, President & CEO
403-640-0110
www.millcitygold.com