The Conversation (0)
Oct. 23, 2013 04:00AM PST
A new trade agreement between Canada and the EU is akin to a “new day” for Canada’s uranium industry.
Canadian Prime Minister Stephen Harper has called the the Comprehensive Economic and Trade Agreement (CETA) the “biggest, most ambitious trade agreement” that Canada has ever embarked upon. It is also the first time a free trade agreement has been laid out between the European Union (EU) and a G8 country.
CETA will create new market access between Canada and the EU, at the same time removing 99 percent of tariffs between the two economies. The “wide-ranging agreement is expected to bolster the EU’s GDP by around €12 billion ($16.5 billion) per year,” according to World Nuclear News.
Out with the old
Canada’s trade restrictions have been in place since 1970, when Ottawa introduced the non-residential ownership policy (NROP). However, because they came about as a result of Cold War concerns relating to nuclear proliferation, they have become increasingly dated, the Financial Post states .
Of all the provinces and territories involved in the uranium industry in Canada, Saskatchewan holds the largest share. As a result, the province has missed out on some serious investment from foreign companies.
Saksatchewan welcomes new trade regulations
The new trade deal is being viewed as a win for Saskatchewan, which stands to gain billions of dollars in investment in its uranium resources. Currently, trade regulations make it so that foreign ownership in any uranium project is capped at 49 percent. Should the trade regulations change, the province could see up to $2.5 billion in investment over the next 15 years.
Saskatchewan’s premier, Brad Wall — as well as other industry players — has been lobbying for a change in foreign ownership regulations since coming into power in 2007.
As trade regulations stand, “if you’re a European company and you want to invest in a mine in Saskatchewan you need to find a majority partner who’s Canadian and for some companies that has been a comfortable proposition, like Areva.”
However, Wall expects that if given the choice, foreign companies would prefer not to have a minority ownership in their property. He believes that “the provisions will be gone for these companies … and so they’ll be able to own a mine outright in the province if they choose to develop the resource.”
Major players
With the floodgates hopefully soon to be opened, it seems that many are waiting to see whether Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) will make a move on Saskatchewan’s uranium bounty.
In January 2012, Rio Tinto acquired the Roughrider property through its takeover of Canadian junior Hathor Exploration. With the takeover, a new entity, Rio Tinto Canada Uranium, was created. However, through the bidding process, the company issued a direct challenge to Canada’s Competition Policy Review Panel with a $654-million bid for the uranium project. If Roughrider goes into production, with current regulations, Rio cannot own more than 49 percent.
According to the Canadian Press, “Rio Tinto welcomes CETA and the easing of Canadian restrictions on European Union investment in the uranium mining sector, as we believe policies that promote trade and foreign investment enhance the prosperity of Saskatchewan and other regions of Canada.”
As far as Canada’s biggest uranium player, Cameco (TSX:CCO), is concerned, changes to the NROP are welcome as long as they include “reciprocal access” with the EU.
Europe accounted for 21 percent of the company’s uranium sales last year, as per the Financial Post.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
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Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
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Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
