WA uranium explorers have ridden a crest of optimism today after yesterday’s decision by the State Government to clear the way for the development of dozens of uranium projects across the State.

One of the biggest gains was posted by Bannerman Resources, which closed up 11.5 cents, or 31.9 per cent, to 47.5 cents one day after it named the former managing director of lead and zinc miner Perilya, Len Jubber, as its chief executive.

“Despite the short-term challenges to junior miners posed by the global credit crunch and weakening commodities prices, the longer-term fundamentals for the uranium sector remain sound,” Mr Jubber said.

Bannerman also said on Monday it had a secured convertible note facility for up to $20 million with Colorado-based private equity manager Resource Capital Funds.

Perth-based Encounter Resources, which has an 80 per cent stake in the estimated 10 million pound Hill View project, was also higher, up 3 cents, or 42.86 per cent, to 10 cents at close of trade today.

Encounter was followed by U3O8, the owner of the estimated 10 million pound Dawson-Hinkler project, which closed up 2.5 cents, or 22.73 per cent, to 13.5 cents.

However, WA-based Paladin Energy was down 4 cents or 1.66 per cent to $2.37 and BHP Billiton was down 90 cents or 3.59 per cent to $24.20.

The fall came despite BHP’s announcement that it had restarted work on the Yeelirrie project which, at an estimated 116 million pounds of triuranium octoxide, is the State’s largest.

The company said it was assembling a project team to evaluate mining and processing options, undertaking a drilling program to confirm the resource, preparing an environmental impact statement and starting community consultation.

However, DJ Carmichael analyst James Wilson said it would be at least a couple of years before mining could take place as the necessary regulatory framework’s to transport uranium are put in place.

“You are allowed to mine it in WA, but how are you going to ship it and where are you going to ship it through?” Mr Wilson told AAP.

“You have to get a framework in place. There has to be a state framework, not just a federal one and you have to make sure it is safe to transport.”

Federal Environment Minister Peter Garrett today declined to speculate on whether Australia will boost its number of uranium mines, saying he would apply regulatory approaches under the Environment Protection and Biodiversity Conservation Act 1999 before making a decision.

“We will, as we always have, wait until any specific proposals come through to us for consideration under the EPBC Act. That’s our requirement as regulators,” he said.

But Western Australia's business lobby welcomed the decision, saying it was the start of a lucrative long-term revenue stream.

Chamber of Commerce and Industry of WA executive director of industry policy Trevor Lovelle said the removal of the ban would generate significant royalty revenue, while encouraging new investment, growth and employment, while Association of Mining and Exploration Companies acting executive director Sonia Webster said the decision would ensure the state was ready to supply a growing demand for the resource.

The news came as yesterday’s revelations of a proposed merger between Toronto Stock Exchange-listed Forsys Metals and the privately owned George Forrest International, valued at $727.2 million.

The scope of the Canadian deal, announced on Friday night Perth time, sparked speculation uranium stocks might be re-rated, given that the deal valued the Namibian-focused Forsys’ undeveloped uranium resources at $C7.80 a pound.

While the figure was in line with recent deals that have valued resources at between $US6.20 and $US16.50/lb, Australian companies are trading at lower multiples. – The West Australian