Orion Metals (ORM) now next to Northern Uranium (NTU)...

Orion Metals (ORM) has staged a massive 76% increase in it's share price to $0.15 after announcing today that it has acquired the Killi Killi Hills rare earth project in Western Australian close by to Northern Uranium (NTU) tenements.  The company picked up the tenements on the cheap by paying only $55,000 (cash and scrip) and a possible future maximum royalty of $100,000 to Mount Resources Pty Ltd.  I tweeted about the announcement a little after 3pm and luckily took a small position at $0.11 at the time.

Reading the forums online there has been a lot of chatter about the stock and it's potential upside for a number of reasons.  These reasons include:

• Small market cap of only $8 million undiluted (Northern Uranium's is approximately $40 million)
• Lack of shares on issue (approximately 55 million) which will make it hard to stifle the share price
• Rock chip samples recently taken with results due in the next week.  Anticipation of these results will help the share price.
• 'Nearology' to Northern Uranium.  Traders and investors will be wanting to ride the next share price burst after the performance of NTU shares.

The company also has other rare earth tenements in Queensland plus a copper-gold project near CuDeco Limited (CDU).  Tomorrow will be an interesting day, hold on to your hats ladies and gentleman.

As an aside and interesting to note, Areva has taken it's chance to exit the share registry of Northern Uranium.  Areva filed a 'ceasing to be substantial shareholder' notice to the ASX today.