Energy Resources Of Australia To Issue Shares, In Trading Halt

Energy Resources of Australia Ltd. (ERA.AU) said Wednesday it would issue new shares to institutional and retail investors.

The uranium miner, controlled by Rio Tinto Ltd. (RIO), has placed its shares in a trading halt until Monday. ERA said in a statement it will provide details of the raising in a future announcement to the market.

The company's board recently approved the exploration of an untapped deposit that could extend the life of its Ranger mine in Australia's Northern Territory.

Construction of a A$120 million exploration 'decline'--a tunnel bored through the resource to facilitate closely spaced drilling and a geotechnical assessment--at Ranger 3 Deeps is expected to commence in May next year, subject to regulatory approvals, ERA said in August.

The company's cash flow has been disrupted by a recent temporary closure of Ranger due to wet weather and lower-than-expected ore grades at the bottom of the existing pit.

ERA said third quarter uranium oxide production in the three months to Sept. 30 rose 11% to 1,010 metric tons and it reiterated its 2011 full year production guidance of 2,600 tons.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [e-mail]