In response to a severe cash crunch, Powertech Uranium Corp. on August 1 announced several transactions that raise much-needed working capital and transfer control of the troubled Centennial project to a Hong Kong based investment firm with no uranium mining experience. The firm, Azarga Resources Limited, becomes Powertech's largest shareholder and will advise the Canadian company's managers. The deals provide Powertech with enough cash to survive through November or perhaps December, based on the company's recent cash burn rate [Jim Woodward, "Powertech sells 60% of Centennial project to Hong Kong investment firm; inexperienced Chinese company becomes largest Powertech shareholder," Powertech Exposed, 2013.10.13].
Woodward updates Azarga's takeover of Powertech with details about the deal (you want desperate? Powertech pays Azarga 15% interest even if it pays off the debt) and Azarga CEO Alexander Molyneux's connection to mine financier and polluter Robert "Toxic Bob" Friedland, questionable Azarga investments in Kyrgyzstan... whew! If Powertech does get its permits, it's hard to say who will be calling the shots at the Dewey-Burdock uranium mine, Canada or China.