Topic: How To Invest

Pat: What do you think about junior explorer Crosshair Energy?

Article Excerpt

Crosshair Energy, $0.12, symbol CXX on Toronto (Shares outstanding: 49.2 million; Market cap: $5.9 million; www.crosshairenergy.com), is a Vancouver-based company that explores for uranium and vanadium. Vanadium strengthens steel. It may also be used in electric-car batteries. Crosshair owns the Bootheel and Juniper Ridge projects, in uranium mining-friendly Wyoming. The deposits together hold as much as 9.8 million pounds of uranium. Crosshair has also begun to outline a vanadium resource at its CMB uranium/vanadium project in Labrador. The company just bought 2,600 square miles of uranium exploration properties in Argentina from Wealth Minerals Ltd. (Toronto symbol WML). Crosshair paid $1 million in cash and one million common shares. It will issue the shares and make the cash payments over a two-year period. The company’s wide range of projects gives it some speculative appeal. However, it held cash of just $3.9 million on July 31, 2012. Moreover, it’s using up this cash at a rate of about $2.3 million per quarter, so it will…