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$1.1M Placement to Advance Lyndon Uranium Project
Odessa Minerals Limited (ASX:ODE) (“Odessa” or “the Company”) is pleased to announce it has received firm commitments from professional and sophisticated investors for a Placement to raise $1,112,500 (before costs) (“Placement”) by way of a two tranche placement of fully paid ordinary shares (“New Shares”).
Highlights:
- Oversubscribed Placement to sophisticated investors raises $1.1M via two tranche placement
- Proceeds to be utilised to continue exploration and drilling the Lyndon Uranium project, including key targets at Relief Well and Baltic Bore.
Tranche 1 comprising of 225 million New Shares will be issued immediately utilising the Company’s existing placement capacity under ASX Listing Rule 7.1/7.1A. Tranche 2 comprises 331.25 million New Shares which are subject to shareholder approval at the Company’s AGM in November, including a subscription by Non- Executive Chairman Mr Zane Lewis for $100,000 of New Shares.
The issue price of A$0.002 per New Share represents a discount of nil to the last closing price of $0.002 on 25 September and a 23.9% discount to the 15-day volume weighted average price of $0.0263.
Proceeds from the Placement will be utilised to continue exploration at Odessa’s projects including:
- Exploration and drilling of the Company’s Lyndon Uranium Project
- General working capital purposes.
Zane Lewis, Chairman of Odessa, said: “I am very pleased to receive commitments for $1.1M from highly supportive group of long term investors, who share our vision at Odessa. This placement will ensure Odessa is well funded for the upcoming exploration and drilling program at Lyndon.”
Click here for the full ASX Release
This article includes content from Odessa Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Odessa Minerals
Overview
Odessa Minerals (ASX:ODE) is an ASX-listed junior mining and exploration company focusing on uranium exploration in the Gascoyne Region of Western Australia via its three projects— Lyndon Project, Relief Well and Gascoyne East.
Odessa Mineral’s pivot towards uranium and away from lithium is a smart move, especially in the current environment of high uranium prices. Uranium prices have soared to their highest point since 2008, surpassing US$100 per pound. This upward trend is expected to continue due to the ongoing supply and demand imbalance for uranium. With its portfolio of uranium projects, Odessa is strategically positioned to capitalize on these robust market fundamentals.
Odessa Minerals’ projects in the Gascoyne Region of Western Australia totalling >3,000km2
The company’s flagship Lyndon project is immediately adjacent to Paladin Energy’s 15.6 million pounds (Mlbs) U3O8 Carley Bore uranium project. The Lyndon Project has identified highly significant uranium intersections with some rock chip sample assay results showing exceptional grades up to 6,612 parts per millions (ppm) U3O8 at the Baltic Bore and Jailor Bore prospects. Odessa plans to begin drilling at the target areas in 2024.
The other two projects—Relief Well and Gascoyne East—have shown significant potential for uranium. An extensive palaeochannel stretching over 8 kilometers has been verified at Relief Well, offering the potential for uranium mineralization in a roll-front style. Odessa is planning a drilling program to test roll-front uranium mineralization at Relief Well.
The Gascoyne East project is one of the most under-explored areas in the Gascoyne Province. The company has identified multiple gold, copper and uranium targets for the project, and drilling has been planned for 2024.
The company is in the early stages of its operations, making it attractive for investors looking to get exposure to uranium assets in a tier-1 mining region like Gascoyne. The high insider holding, at nearly 28 percent, is an encouraging sign for investors as it aligns management’s interests with those of the shareholders.
Company Highlights
- Odessa Minerals is an ASX-listed, uranium exploration company with a large holding covering over 3,000 sq. km. in the Gascoyne region of Western Australia. The company has three key projects in the area – Lyndon, Relief Well, Gascoyne East.
- The company focuses on advancing uranium prospects at its flagship project, Lyndon. Lyndon is adjacent to Paladin Energy’s Carley Bore uranium project, which has a resource base of 15.6 Mlbs U3O8.
- Initial review of the Lyndon project has identified highly significant uranium intersections at the Jailor Bore, Baltic Bore and Ben Hur prospects, with some exceptional grades reaching up to 6,600 ppm U3O8.
- The Relief Well Uranium Project has revealed significant palaeochannel-hosted uranium mineralization typically amenable to low-cost recovery. The company will move forward with drill planning and seek approvals to conduct drilling at the Relief Well prospect.
- Uranium prices have surged to their highest level since 2008, exceeding US$100 per pound. This upward trend is anticipated to persist due to the tight supply and demand balance for uranium. Odessa's portfolio of uranium projects is well-positioned to benefit from strong fundamentals.
- The Gascoyne East project has extensive gold, copper and uranium targets that were identified during the recent airborne survey. The company is planning air-core and RC drilling for the project in 2024.
- The Company’s senior leadership team is well-experienced in the mining sector and has significant ownership in the company at nearly 28 percent. This is an encouraging sign for investors as it aligns the management’s interest with that of the shareholders.
Key Projects
Lyndon Project
The Lyndon project tenements total 1,000km2 of highly prospective ground for REE/lithium exploration. The project has also shown signs of significant uranium potential, making the company pivot towards it and aligning its priorities to uranium exploration. The initial fieldwork on the project has yielded impressive results.
Jailor Bore, Baltic Bore and Ben Hur prospects showed significant calcrete-hosted uranium mineralization at the surface. The findings at the Balti Bore and Jailor Bore included 12 rock chips with assays revealing over 1,000 ppm U3O8 and five rock chips with assays showing more than 1,000 ppm V2O5 (vanadium oxide).
Carnotite (uranium) mineralisation within siliceous calcrete at the Jailor Bore prospect in sample XT0938.
Baltic Bore prospect: The Baltic Bore prospect area features several radiometric anomalies linked to calcrete terraces, extending over a strike length of 2.6 km. Baltic yielded a noteworthy 6,612 ppm U3O8 while also uncovering 2,132 ppm V2O5 in sample XT0970. An additional eight samples show rock chip assays exceeding 1,000 ppm U3O8. Historically, little attention has been paid to the Baltic Bore prospects compared to Jailor Bore. However, the assay results at Baltic Bore indicate significant potential for high-grade uranium discovery.
Jailor Bore target: Jailor Bore encompasses more than 2 km of uranium radiometric anomalies along its strike length. Surface mineralization has been observed at this target, with four rock chip assays exceeding 1,000 ppm U3O8, with a maximum of 4,489 ppm U3O8. Additionally, high vanadium levels were found to be associated with uranium mineralization, with rock chip XT0929 showing up to 1,541 ppm V2O5.
Ben Hur, Giant and Red Hill Uranium Targets: The Ben Hur, Giant and Red Hill prospects exhibit calcrete-type uranium mineralization similar to that found at the Baltic Bore and Jailor Bore. Historical exploration reported intersections up to 2 meters @ 411 ppm U3O8 from 4 meters.
Relief Well Project
VTEM survey data has confirmed the presence of a palaeochannel at the Relief Well prospect with a strike length of greater than 8 km that remains open to the south. The palaeochannel-hosted uranium mineralization at the Relief Well prospect is typically amenable to low-cost in-situ leach recovery. Relief Well is situated directly along the strike and serves as an upstream extension of the paleochannel that hosts Paladin Energy’s Carley Bore, which contains a 15.6 Mlbs U3O8 resource. The company will now move forward with drill planning and will seek approvals to conduct drilling at the Relief Well prospect.
Gascoyne East Project
The Gascoyne East Project tenements cover 2,108 sq. km. of exploration licenses. The Gascoyne East project is one of the most under-explored areas of the Gascoyne Province. The company has identified multiple gold, copper and uranium targets for the project, and is planning a two-phase air-core drilling program. Phase 1 air core drilling with hole spacings ranging from 200 meters to 400 meters aims to update the basement geology model and rank targets for the follow-up Phase 2 drill program, which will test for mineralization at depth. Phase 1 drilling is expected to commence in Q3 2024.
Management Team
Zane Lewis – Non-Executive Director
Zane Lewis is the principal and co-founder of SmallCap Corporate, a corporate advisory firm that specializes in providing corporate advice and compliance administration to public companies. Leveraging his extensive financial and corporate experience from previous roles, Lewis brings a wealth of knowledge to the board. Additionally, he holds the title of Fellow of the Governance Institute of Australia and serves as a non-executive director of Lion Energy (ASX:LIO) and Kairos Minerals (ASX:KAI).
David Lenigas – Executive Director
David Lenigas is a mining engineer holding a Western Australian First Class Mine Managers Certificate. He boasts vast corporate experience, having served as chairman and chief executive officer of numerous leading stock exchanges worldwide, overseeing various business sectors. He has also held senior financial and management roles in publicly listed and private enterprises across Australia, the United Kingdom, Canada and Africa.
Lisa Wells – Non-Executive Director
Lisa Wells brings 26 years of experience as an exploration geologist, having worked across various commodities such as diamonds, bulk commodities, gold, and base metals. Previously, she was a senior geologist at United Kimberley Diamonds, overseeing the Phillips Range diamond bulk sampling program at Aries South in Central Kimberley.
Wells has extensive expertise in environmental and permitting approvals, coordinating trial mining operations, conducting feasibility studies, and managing projects across a range of commodities, including diamonds, gold, phosphate and base metals.
Currently, Wells is a non-executive director of Territory Minerals, a gold company with projects in North Queensland. She holds a BAppSc. in Geology from Curtin University.
Robbie Featherby – Company Secretary
Robbie Featherby is a corporate advisor at SmallCap Corporate, a specialized boutique firm offering company secretarial, CFO and transaction management services to both listed and unlisted companies. Additionally, he is the company secretary at Victory Goldfields (ASX:1VG), Cosmos Exploration and Volt Resources.
Odessa Minerals Limited (ASX: ODE) – Trading Halt
Description
The securities of Odessa Minerals Limited (‘ODE’) will be placed in trading halt at the request of ODE, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 30 September 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from Odessa Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
High-Grade Uranium Interval of 1963ppm at Likuyu North at the Mkuju Uranium Project; Commencement of Initial ISR Work
Gladiator Resources Ltd (ASX: GLA)(Gladiator or the Company) is pleased to provide an update on its ongoing exploration activity at the Mkuju Uranium Project, located in southern Tanzania.
- Drill-hole LNDD020 drilled at the Likuyu North deposit, part of the Mkuju Project, returns 6 mineralised intervals including 7.1 metres averaging 1,963ppm eU3O81, from 63.1 metres depth. This hole was drilled central to the deposit to provide core for an assessment of In Situ Recovery (ISR) of the uranium.
- ISR is the preferred method for mining uranium deposits. ERM Australia Consultants Pty Ltd (ERM) are undertaking an initial ISR assessment for Likuyu North.
- Drill-hole LNDD015 down-dip of the deposit has a ~5m mineralised interval; samples have been dispatched to the lab. This interval is 100m south of the current Mineral Resource Estimate (MRE).
- The 2022 JORC compliant MRE for Likuyu North (4.6 Mlbs U3O8) was based on a pit- shell assuming conventional open-pit mining methods; adoption of ISR may support expansion of it.
Commenting on the drill results, Gladiator’s Chairman Greg Johnson said:
“Drillhole LNDD020 demonstrates the quality of the Likuyu North deposit, and we are excited by the potential opportunity the area provides. Grade and other characteristics appear to be well-suited to ISR. With that in mind, Gladiator has appointed ERM (formerly CSA Global) to help advance this strategy, and if the ISR study is encouraging the Company will consider larger-scale exploration at Likuyu North, Likuyu South and at the Mtonya deposit area, with an aim of maximizing the resource available for a potential ISR operation”.
Drillhole LNDD020
This hole was drilled to provide fresh drill-core to assist with initial assessment of the potential of ISR as a mining method for the Likuyu North deposit. The deposit has a JORC compliant Mineral Resource Estimate of 4.6Mlbs U3O8 with an average grade of 267ppm U3O8. The hole was positioned in an area relatively central to the deposit known to have thick and high-grade mineralisation, hosted by medium to coarse grained sandstone beds. Figure 1 is a cross-section and shows LNDD020. The hole contains 6 mineralised intervals (Table 2) including:
- 2.5 metres with an average grade of 438 ppm eU3O8 from 17.1m depth.
- 7.1 metres with an average grade of 1,963 ppm eU3O8 from 63.1m depth.
Figure 1: North-south cross-section showing the downhole logged eU3O8, mineralized layers and oxide/transitional zones. LNDD015 and LNDD020 are shown.
Click here for the full ASX Release
This article includes content from Gladiator Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Uranium Reserves: Top 5 Countries (Updated 2024)
Uranium is an important commodity in the energy sector, and knowing the countries with the top uranium reserves is key.
Mined uranium resources have provided fuel for nuclear power generation for more than 60 years, and today nuclear power serves 10 percent of global energy needs. Global uranium demand is anticipated to grow in the coming years, which bodes well for future uranium prices. According to the World Nuclear Association (WNA), around 60 nuclear reactors are under construction worldwide, and significant increases to capacity at existing plants are also planned.
Global uranium production totaled 57,651 metric tons (MT) of U3O8 in 2022, the latest year for which numbers are available. The five top uranium-producing countries in the world are Kazakhstan, Canada, Namibia, Australia and Uzbekistan, and they were responsible for the vast majority of that production.
But what are the top uranium reserves by country? Here the Investing News Network provides an overview of the five countries with the largest uranium resources, with data sourced from the WNA. Reserves data for deposits owned by public companies is sourced from MiningDataOnline.
1. Australia
Uranium resources: 1,684,100 metric tons (28 percent of world uranium resources)
Which country has the most uranium? While Australia ranks fourth in global uranium production, it takes the lead for the highest uranium reserves in the world.
Australia’s crown jewel is Olympic Dam, the largest-known single deposit of uranium in the world with proven and probable reserves of 588 million MT at an average grade of 590 grams per MT (g/t) uranium in-situ. The mine is owned by BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and produces uranium as a byproduct.
Other major uranium deposits in the country include Ranger, Beverley and Four Mile. While the latter two are owned by a private company, Ranger is owned by Energy Resources of Australia (ASX:ERA,OTC Pink:EGRAF), in which Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) has a majority interest. However, production at Ranger was brought to a halt in early 2021 and the site is now being rehabilitated.
Australia is key to the global uranium industry, but mining the material is politically contentious in the country. For example, the Western Australian government has put the brakes on any new domestic uranium-mining project approvals, although it is allowing existing projects to go ahead. In addition, the federal government is opposed to nuclear energy.
In July, the Australian Government put the kibosh on Energy Resources of Australia's attempt to renew its licence permit for the Jabiluka uranium project in the Northern Territory in response to community backlash.
2. Kazakhstan
Uranium resources: 815,200 metric tons (13 percent of world uranium resources)
Kazakhstan comes in second in terms of uranium resources, but ranks first in uranium production. The country's national uranium-mining company, Kazatomprom (LSE:KAP,OTC Pink:NATKY), is the world’s largest uranium producer. Kazatomprom's Inkai uranium mine, a 60/40 joint venture with Canada's Cameco( TSX:CCO,NYSE:CCJ), hosts proven and probable reserves of 261.7 million pounds of uranium contained in 305.6 million MT of ore grading 0.04 percent.
At least 67 percent of Kazakhstan's electricity production comes from coal, with the remainder supplied by natural gas (22 percent), hydro (9 percent) and solar and wind (1.5 percent). However, the country's energy development plan details changes to the mix that would include 5 percent of electricity generation from nuclear power and 10 percent from renewable energy by 2030. Kazakhstan has two proposed and planned nuclear power plants.
Russia's war in Ukraine has created a significant roadblock for Kazakhstan's uranium exports to western markets. Sanctions imposed on Russia have made the cost-effective route via St Petersburg no longer a viable option for transport.
Another issues facing Kazakhstan's uranium mining sector is supply shortages of sulphuric acid, which is used during in-situ leaching to dissolve uranium from host rock. This challenge, coupled with construction delays at new projects, led Kazatomprom to cut its production targets for 2025 by 17 percent.
3. Canada
Uranium resources: 588,500 metric tons (10 percent of world uranium resources)
The second largest uranium producer, Canada is third largest in terms of top uranium countries by reserves. Saskatchewan’s Athabasca Basin is a hotbed for uranium exploration and is known the world over for having the highest-grade uranium deposits on the planet.
The North American nation is home to the world’s top uranium mines: Cameco’s Cigar Lake and McArthur River. Together, they make the province of Saskatchewan an international leader in the uranium sector, although in recent years these operations have spent time offline.
The mines host high-grade deposits, with Cigar Lake's proven and probable reserves totaling 208.6 million pounds of uranium from 600,000 MT grading 17.03 percent, and McArthur River's coming in at 380.5 million pounds of uranium from 2.6 million MT grading 6.72 percent.
Nuclear energy accounts for about 15 percent of Canada’s electricity demand, and its nuclear power infrastructure includes 19 nuclear reactors. As the second largest country by landmass, providing reliable energy to Canada’s many remote regions poses a significant challenge. However, novel reactor technologies, such as small modular reactors, have the potential to supply power to smaller electrical grids or to remote, off-grid areas.
4. Russia
Uranium resources: 480,900 metric tons (8 percent of world uranium resources)
As the largest country by landmass, Russia has a wealth of resources, including 8 percent of the world’s uranium. The majority of Russia’s domestic uranium output comes via Rosatom, a subsidiary of ARMZ Uranium Holding, which owns the Priargunsky underground mine and is developing the Vershinnoye deposit in Southern Siberia.
To meet the nation’s growing energy needs, Russia’s government is keen on increasing its uranium output. According to the WNA, nuclear energy accounted for 19 percent of Russia’s energy mix as of December 2021, the most up-to-date data available. The country has 36 nuclear reactors generating 26,802 megawatts of electricity, with an additional four units under construction.
Russia is among the world's top 10 uranium producers in addition to holding significant reserves, and the country's war with Ukraine has raised questions about the extent to which Russia will be able to continue exports. However, European countries such as France are still importing Russian uranium. In 2023, Russia reportedly accounted for 27 percent of all enriched uranium supplied to US nuclear plants. However, in May 2024, US President Joe Biden signed into law a ban on enriched uranium imports from Russia.
In mid-September 2024, Russian President Vladimir Putin said his government is considering limiting uranium exports in response to ongoing sanctions.
5. Namibia
Uranium resources: 470,100 metric tons (8 percent of world uranium resources)
The world’s third largest uranium-producing country, Namibia, comes in fifth for reserves.
The African nation’s Langer Heinrich mine, owned by Paladin Energy (ASX:PDN,OTC Pink:PALAF), and Rössing mine, majority owned by China National Uranium, are capable of producing 10 percent of the world’s uranium output. Langer Heinrich hosts total proven and probable reserves of 83.8 million pounds uranium from 84.8 million MT at a grade of 448 parts per million.
Significant Namibian deposits also include Trekkopje, which is near Rössing and owned by Orano, and the world-class Husab uranium mine, which is also majority owned by China National Uranium. Husab hosts 224.8 million pounds of probable uranium reserves.
The Namibian government is in favor of expanding the country’s uranium-mining industry. While there are no nuclear power plants in Namibia, there is some support for a national nuclear power industry.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Tisdale Announces Change of Name to Terra Clean Energy
TISDALE CLEAN ENERGY CORP. (“ Tisdale ” or the “ Company ”) (CSE: TCEC, OTCQB: TCEFF , FSE: T1KC ) announces that it will change its name (the “ Name Change ”) to “Terra Clean Energy Corp.”
No change to the capital structure or ticker symbol is expected in connection with the Name Change. The Name Change remains subject to the approval of the Canadian Securities Exchange, and the Company will issue a further news release once the effective date for the Name Change has been determined.
About Tisdale Clean Energy Corp.
Tisdale Clean Energy is a Canadian-based uranium exploration and development company. The Company is currently developing the South Falcon East uranium project located in the Athabasca Basin region, Saskatchewan, Canada.
ON BEHALF OF THE BOARD OF TISDALE CLEAN ENERGY CORP.
“Alex Klenman”
Alex Klenman, CEO
For further information please contact:
Alex Klenman, CEO
Tel: 604-970-4330
Tisdale Clean Energy Corp
Suite 2200, RBC Place, 885 West Georgia St.
Vancouver, BC, V6C 3E8, Canada
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules, and regulations.
Fund Managers: "Highly Constructive" on Uranium Price, Stocks We're Focusing on Now
Keith Watson and Rob Crayfourd, co-fund managers at the Geiger Counter Fund, shared their outlook on uranium supply, demand and prices, plus which companies they think have the most potential moving forward.
While acknowledging the recent price pullback, the experts said the sector's long-term outlook is positive.
"Ultimately we're at the very start of what we expect to be a longer-term imbalance in supply vs. strong demand, and therefore a very healthy price outlook for the sector," Watson explained during the interview.
When asked about the Geiger Counter Fund's focus, Crayfourd highlighted the Athabasca Basin in Saskatchewan, Canada, saying it's a tier-one jurisdiction that's home to a slew of strong uranium assets.
"We think that those projects, particularly Canadian assets that are uncontracted and able to participate in the upside that we see in the market going forward, are best placed," he noted. The fund has a heavy weighting toward NexGen Energy (TSX:NXE,NYSE:NXE), Fission Uranium (TSX:FCU,OTCQX:FCUUF) and IsoEnergy (TSX:ISO,OTCQX:ISENF).
Watson added that it also has exposure to US companies with small but reasonable production profiles that are in the process of starting or restarting output, as well as leverage via stocks with slightly higher-cost deposits.
Watch the interview above for more of their thoughts on uranium stocks, as well as the outlook for the commodity.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
UEC to Grow US Portfolio with Acquisition of Rio Tinto's Wyoming Uranium Assets
Uranium Energy (UEC) (NYSEAMERICAN:UEC) announced the acquisition of Rio Tinto America’s Wyoming assets, including the Sweetwater plant and a portfolio of uranium-focused projects.
UEC said the deal will strengthen its position in the US uranium industry as the country looks to build up domestic supply of the energy fuel following this year's ban on Russian uranium imports.
The uranium projects hold about 175 million pounds of historic resources, while the Sweetwater plant, which is a conventional processing facility, has a licensed capacity of 4.1 million pounds of U3O8 per year.
The plant, located 40 miles from Rawlins, Wyoming, has been under care and maintenance since 1983. According to UEC, it can be also adapted to recover uranium from loaded resins produced by in-situ recovery (ISR) operations.
In total, the agreement with Rio Tinto will give UEC ownership of more than 53,000 acres of exploration and mining rights, along with geological data from about 13,000 drill holes, plus 26,000 assay records.
UEC, which currently has 12 uranium projects in Wyoming’s Great Divide Basin, said the acquisition will create a third production hub within its existing US portfolio. The Sweetwater plant will play a central role in this hub, unlocking the development potential of nearby uranium resources, particularly those suitable for ISR methods.
The company explained that the transaction builds on its previous expansion efforts, such as its acquisition of Uranium One Americas in 2021, which also focused on the Great Divide Basin.
Amir Adnani, UEC’s CEO, emphasized that the purchase comes at a critical time for the uranium market, as global demand for nuclear energy rises and geopolitical factors reshape supply chains.
“The Russian uranium ban and recent comments by Russian government officials regarding restricting future uranium exports to the west underscore the critical importance of maintaining reliable domestic supply chains to power our growing requirements for clean baseload energy," he said in a Monday (September 23) press release.
“With our fourth acquisition since 2021, UEC is continuing to execute towards building the premier and fastest growing North American uranium company,” Adnani added.
The acquisition will be completed through a stock purchase agreement, with UEC acquiring two Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) subsidiaries that hold the Wyoming assets. The US$175 million purchase price will be funded through UEC’s existing liquidity, with closing expected in the fourth quarter of 2024.
Once the deal has gone through, UEC plans to begin upgrading the Sweetwater plant for ISR processing, and will advance exploration efforts at its newly acquired property.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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