Baselode Energy Announces Flow-Through Private Placement


/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES ./

Baselode Energy Corp. (" Baselode " or the " Company ") (TSXV: FIND) is pleased to announce a non-brokered private placement of up to 2,500,000 flow-through units (the "FT Units") of the Company at a price of C$0.40 per FT Unit for gross proceeds of up to C$1.0 million (the "Offering"). Each FT Unit shall be comprised of one flow-through share in the capital of the Company (each a "FT Share") and one half of one Common Share purchase warrant (each a "Warrant"). Each Warrant shall be exercisable into one Common Share at a price of C$0.60 at any time on or before the date, which is 24 months after the Offering's closing date. Red Cloud Securities Inc. will be acting as a finder on behalf of the Company in connection with the Offering.

The Offering's net proceeds will be used for exploration work at the Company's Shadow and Hook project s. Both projects are testing for near-surface, basement-hosted, high-grade uranium targets in the Athabasca Basin area of northern Saskatchewan, Canada .

The closing of the Offering, which is expected to occur on or before December 14, 2020 , is subject to receipt of all necessary regulatory approvals, including the approval of the listing of the common shares on the TSX Venture Exchange. The Offering securities issuable will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States , nor in any other jurisdiction.

About Baselode Energy

Baselode is a uranium exploration company focused on discovering a uranium orebody in the Athabasca Basin area in Saskatchewan, Canada .

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Baselode Energy Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Baselode Energy Corp. Additional information identifying risks and uncertainties is contained in filings by the Company with Canadian securities regulators, which filings are available under Baselode Energy Corp. profile at www.sedar.com .

SOURCE Baselode Energy Corp.

Cision View original content: https://www.newswire.ca/en/releases/archive/November2020/26/c2203.html

News Provided by Canada Newswire via QuoteMedia

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2024 Uranium Outlook Report for Investors

2024 Uranium Outlook Report

2024 Uranium Outlook Report

After a stellar 2023, the question is whether uranium will continue to rise steadily or spike higher like it did in the last cycle.

Our journalists have reached out to the insiders to get you their best forecasts and tips on the best way to invest in uranium in 2024.

Table of Contents:

  • Uranium Price Update: Q1 2024 in Review
  • Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis
  • Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?
  • Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium
  • Top 5 Canadian Uranium Stocks
Uranium Outlook 2024

A Sneak Peek At What The Insiders Are Saying

“We don't need any more catalysts. We've got a 30 million to 50 million pound supply deficit in the market probably for the next five years. That's what we're looking at. And that's what's going to move the price"
— Justin Huhn, Uranium Insider

"To us (nuclear energy) was always the answer. And while everyone seems very pessimistic about everything, I think that perhaps we could be on the verge of a huge, major transformation where finally we do appreciate nuclear for the unbelievable technology that it is."
— Adam Rozencwajg, Goehring & Rozencwajg

Who We Are

The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.

At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.

So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.

2024 Uranium Outlook Report

Uranium Price Update: Q1 2024 in Review

The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.

Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.

“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.

These favorable fundamentals are expected to support uranium prices for the remainder of the year.

Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.

“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”

Sulfuric acid shortage impeding supply growth

The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.

Uranium price, Q1 2024.

Uranium price, Q1 2024.

Chart via Cameco.

Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”

The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.

“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.

“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”

In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.

In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.

In the meantime, disruptions to Kazakh output will only grow the market deficit.

According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.

“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.

Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.

Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.

“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”

COP28 nuclear commitment supporting demand

The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.

As Finegold explained, some of the retraction was the result of profit taking from short-term holders.

“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.

Finegold went on to highlight the different investment perspectives within the market.

“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”

Despite February's slight contraction, uranium prices have remained elevated above US$80.

Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.

There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.

Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.

“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”

Geopolitical risk and resource nationalism are price catalysts

Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.

This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco (TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.

In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.

South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.

Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.

Instead, the country imports as much as 40.5 million pounds annually.

According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.

Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”

If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.

“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.

Uranium price outlook remains positive

After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.

“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”

The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, 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.

Additional information on uranium stock investing — FREE

Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis

All eyes were on uranium at the end of 2023 as the energy fuel soared through US$100 per pound.

But where is the market headed this year? Justin Huhn, founder and publisher of Uranium Insider, shared his thoughts in an extensive interview with the Investing News Network, emphasizing his continued bullishness.

Outlining current supply/demand dynamics, Huhn said that although 2023's sizeable deficit of about 40 million pounds will shrink a little in 2024, he sees a "very large" deficit persisting for a number of years.

Huhn sees this situation pushing prices for uranium much higher, although he didn't give an exact number.

"The price isn't going to make sense for anybody," he said. "We can arguably go up another US$20 — that will arguably incentivize every project in the world to be profitable. But the price is going to go far beyond that simply driven by the substantially larger amount of demand than we have for supply."

In terms of which stocks to focus on, Huhn said since December small- and mid-cap companies have been outperforming larger-cap companies — he's tracking that movement via the Sprott Junior Uranium Miners ETF (NASDAQ:URNJ), which holds a basket of small- and mid-cap uranium stocks, and sector major Cameco (TSX:CCO,NYSE:CCJ).

"The main theory around this is that as the story gets more popular due to its relative performance and it starts to attract more investment attention, you're going to attract more retail investors, and the retail investors largely go after the smaller companies because they believe that there's torque in those companies. And there is torque in those smaller companies," he explained during the conversation. "Unfortunately, when risk is off, that torque is to the downside. When it's on they can outperform by orders of magnitude."

Watch the interview above for Huhn's full thoughts on the topics discussed above, as well his analysis of Cameco's latest results, contracting in the uranium space and why the sector doesn't need any more catalysts.

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.

Additional information on uranium stock investing — FREE

Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?

Speaking to the Investing News Network, Lobo Tiggre, CEO of IndependentSpeculator.com, shared his thoughts on uranium's recent price pullback and gold's new nominal all-time high.

"I'm putting uranium back on the table again. I'm actually as bullish again now on uranium as I am on gold for this year. I think both are going to do really well," he said at the Prospectors & Developers Association of Canada (PDAC) convention.

Watch the interview for more from Tiggre on uranium and gold. You can also click here for our PDAC playlist.

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.

Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.

Additional information on uranium stock investing — FREE

Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium

Speaking to the Investing News Network, Gwen Preston of Resource Maven shared her thoughts on gold in 2024, noting that the yellow metal should work for investors from the middle of the year onward.

"I think the next move up in gold is going to require the rate cut — we've had the expectation of the rate cut built into the price, that's why we've gone up to new highs," she said at the Vancouver Resource Investment Conference (VRIC). "But we're still really in that sideways trend ... I think actually breaking through it will require the rate cut."

Looking over to uranium, Preston said that although the price has moved substantially in recent months, the commodity's supply/demand dynamics are such that it could "easily" jump to US$140 per pound overnight.

In terms of supply, uranium has become a seller's market. While companies are working to bring new mines online and restart idled production, the process won't be quick. She sees some relief coming from hedge funds that bought uranium at low prices and are now ready to sell, but emphasized that the volumes they'll be able to provide will be small.

There's also the east/west divide in the sector. Preston noted that the US Senate is likely to approve a ban on Russian uranium imports — and if that happens, Russia will probably preemptively cut off sales of the material to the US.

"There just isn't supply ... despite a few little setbacks that maybe create a trading range for a little while here to stabilize this huge price run that we've seen, I think (the price) will still go higher. I'm very confident that the price is going to end 2024 higher than the insane price that it began the year at. Because it's not actually insane. It's a valid representation of the lack of this essential commodity that the utilities need," she explained during the conversation.

In Preston's view, the safest uranium stocks right now are those with growing US production — those include Uranium Energy (NYSEAMERICAN:UEC), enCore Energy (TSXV:EU,NASDAQ:EU) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU).

Watch the interview above for more from Preston on gold and uranium. You can also click here for the Investing News Network's full VRIC playlist on YouTube.

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: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.

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.

Additional information on uranium stock investing — FREE

Top 5 Canadian Uranium Stocks of 2024

The spot uranium price added 86.41 percent to its value in 2023 and started 2024 at US$90.98 per pound. By late January, prices for the energy commodity had rallied to a 17 year high of US$106.

However, as Q1 progressed, uranium saw some consolidation. By March 11, values had slipped below US$90 for the first time since late December. Even so, prices remain historically high, holding above US$85 as of April 10.

Uranium's sustained high values following years of underperformance underscore its positive supply and demand dynamics, which are improving as nuclear power becomes an important factor in the energy transition.

During an interview with the Investing News Network at the annual Prospectors & Developers Association of Canada convention in March, Scott Melbye of Uranium Energy (NYSEAMERICAN:UEC) and Uranium Royalty (TSX:URC,NASDAQ:UROY) expressed optimism about the current price trajectory for the energy fuel.

"There's nothing to keep uranium from going to US$150, US$200 in this environment," he said.

Below are the top uranium stocks on the TSX, TSXV and CSE by share price performance so far this year. All data was obtained on April 9, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Read on to learn what factors have been moving their share prices.

1. District Metals (TSXV:DMX)

Year-to-date gain: 140.63 percent; market cap: C$41.8 million; share price: C$0.38

District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It's currently focused on its Viken property, which hosts a uranium-vanadium deposit.

Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world's largest in terms of uranium and vanadium mineral resources."

Shares of District spiked to a Q1 high of C$0.37 on March 11, shortly after the Swedish government announced plans to review a nation-wide ban on uranium mining and exploration that has been in place since 2018.

“We are very pleased with this official statement from the Swedish Government and believe it is a significant step towards lifting the current uranium mining moratorium in Sweden,” Garrett Ainsworth, CEO of District, said. “The Swedish Government has made its intentions clear by stating that ‘the current ban on uranium mining will be removed.’ District is ready for this transformational decision with our portfolio of properties in Sweden.”

Earlier in the quarter, the company completed the acquisition of the remaining four mineral licenses at Viken.

Company Profile

2. Greenridge Exploration (CSE:GXP)

Company Profile

Year-to-date gain: 78.72 percent; market cap: C$13.89 million; share price: C$0.84

Canada-focused Greenridge Exploration is currently engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada. The Nut Lake asset spans 4,036 hectares, and the company says it is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) through a three way merger with Latitude Uranium and 92 Energy.

Nut Lake is a new property for Greenridge — on January 18, the company entered into an option agreement with three parties to acquire a 100 percent stake in the asset. Historic drilling at the polymetallic deposit has identified “significant” uranium mineralization, with intersections of up to 9 feet containing 0.69 percent of U3O8.

On March 28, the uranium explorer announced the addition of Sean Hillacre to its advisory team. Hillacre, who is the president and vice president of exploration at Standard Uranium (TSXV:STND,OTCQB:STTDF), has more than 10 years of experience as a geologist in Saskatchewan's Athabasca Basin. Some of that time was spent on the technical team at NexGen Energy (TSX:NXE,NYSE:NXE,ASX:NXG) advancing the Arrow uranium deposit toward production.

Shares of Greenridge trended higher through Q1, reaching a high of C$0.78 for the period on March 31.

3. Myriad Uranium (CSE:M)

Year-to-date gain: 78.38 percent; market cap: C$11.27 million; share price: C$0.33

Exploration company Myriad Uranium holds a significant interest in two promising uranium projects. At Wyoming's Copper Mountain uranium project, in which it possesses a 75 percent earnable interest, the company is aiming to tap into the “world-class” potential of the district. The state is the US’ top producer of uranium.

Myriad also has an 80 percent stake in uranium exploration licenses comprising 1,800 square kilometers in Niger's Tim Mersoï Basin, another jurisdiction that boasts world-class uranium deposits.

Shares of Myriad registered a Q1 high early in the period, hitting C$0.39 on January 21. The share price bump coincided with news that the company was welcoming “renowned geologist and the pre-eminent authority on Copper Mountain and its uranium endowment” Jim Davis, to its technical committee.

Commenting on the appointment, Myriad CEO Thomas Lamb said, “On October 31, 2023, we announced historic resource estimates and resource targets relating to Copper Mountain. These estimates and targets were the product of C$100 million in exploration and development spends by Union Pacific during the 1970s. Much of this work was led by Jim Davis, and we are delighted he is joining our Technical Committee.”

Company Profile

4. CanAlaska Uranium (TSXV:CVV)

Year-to-date gain: 71.43 percent; market cap: C$98.61 million; share price: C$0.66

CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Athabasca Basin. The region is well known in the sector for its high-grade deposits, which helped birth the moniker "the Saudi Arabia of Uranium."

The company's five asset portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River mine. In 2018, Cameco signed on as a joint venture partner for CanAlaska's project and the company retains a 16.65 percent stake.

The uranium explorer made several announcements over the 90 day period, including the approval of a C$7.5 million exploration program at West McArthur. On February 28, the company reported high-grade intersections at the Pike zone at West McArthur. The discovery was made during the exploration firm's winter drill campaign.

The statement drill hole, WMA082-4, intersected 13.75 percent U3O8 equivalent (eU3O8) over 16.8 meters, including 40.3 percent eU3O8 over 4.7 meters and 13.54 percent eU3O8 over 2 meters. CanAlaska’s share price jumped from C$0.46 on February 27 to C$0.74 the day of the news, and marked a Q1 high of C$0.75 on March 7.

Press Releases
Company Profile

5. Premier American Uranium (TSXV:PUR)

Year-to-date gain: 69.68 percent; market cap: C$41.45 million; share price: C$2.63

Premier American Uranium is focused on consolidating, exploring and developing uranium projects in the US. The company, which was spun out of Consolidated Uranium in late 2023, currently has four assets in two major uranium-producing jurisdictions: Wyoming's Great Divide Basin and Colorado's Uravan Mineral Belt.

On March 20, Premier announced plans to acquire American Future Fuel (OTCQB:AFFCF), which would give Premier access to the Cebolleta uranium project located within the Grants Mineral Belt of New Mexico.

The all-share deal will see the combined value of the merged companies sit at C$129 million.

“The announcement … marks a significant leap in our journey to strengthen our foothold in the US uranium market through opportunistic and strategic M&A,” said Tim Rotolo, chairman of Premier American Uranium. “By acquiring a key project, we’re not just enriching our portfolio; we’re also setting our roots in three principal uranium regions, paving the way for rapid growth.” Shares of Premier reached a quarterly high of C$3.09 on February 8.

Company Profile

FAQs for investing in uranium

What is uranium used for?

Uranium is primarily used for the production of nuclear energy, a form of clean energy created in nuclear power plants. In fact, 99 percent of uranium is used for this purpose. As of 2022, there were 439 active nuclear reactors, as per the International Atomic Energy Agency. Last year, 8 percent of US power came from nuclear energy.

The commodity is also used in the defense industry as a component of nuclear weaponry, among other uses. However, there are safeguards in effect to keep this to a minimum. To create weapons-grade uranium, the material has to be enriched significantly — above 90 percent — to the point that to achieve just 5.6 kilograms of weapons-grade uranium, it would require 1 metric ton of uranium pre-enrichment.

Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.

The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.

Where is uranium found?

The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.

Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.

Kazakhstan is the world’s largest producer of the metal, with production of 21,227 metric tons in 2022. The country’s national uranium company, Kazatomprom, is the world’s largest producer.

Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well, although some of the major mines have been under care and maintenance in recent years.

Why should I buy uranium stocks?

Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.

A slew of factors have led to this bull market. While the uranium industry spent the last decade or so in a downturn following the 2011 Fukushima nuclear disaster, discourse has been building around the metal's use as a source of clean energy, which is important for countries looking to reach climate goals. Nations are now prioritizing a mix of clean energies such as solar and wind energy alongside nuclear. Significantly, in August 2022, Japan announced it is looking into restarting its idled nuclear power plants and commissioning new ones.

Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. At this price level, uranium stocks remain highly undervalued.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Additional information on uranium stock investing — FREE

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Uranium ore and periodic symbol.

Uranium Price Update: Q1 2024 in Review

The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.

Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.

“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.

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Ur-Energy Announces Appointment of New Board Members: John Paul Pressey and Elmer W. Dyke

Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") is pleased to announce the appointment of John Paul Pressey and Elmer W. Dyke as new members of the Ur-Energy Board of Directors

Ur-Energy also announces the anticipated retirement of founding Director James M. Franklin and Director, and former President and CEO, W. William Boberg. Both will continue to serve the Board until the Company's Annual Meeting of Shareholders, June 6, 2024, though neither will stand for re-election at the Meeting. The Company is pleased that our new Board members will be able to benefit from this transition period prior to Dr. Franklin and Mr. Boberg's retirement from the Company.

News Provided by ACCESSWIRE via QuoteMedia

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Toro Energy

Toro to demerge Non-Core Assets including Dusty Nickel Project and Yandal Gold Project

Perth-based uranium development and exploration company Toro Energy Limited (ASX:TOE) (“Toro” or the “Company”) is pleased to advise its intention to demerge its portfolio of non-core assets including its nickel, gold and base metal assets in Western Australia, subject to all requisite approvals.

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Skyharbour Resources (TSXV:SYH)

Skyharbour Resources


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Carmanah Minerals (CSE:CARM)

Carmanah Minerals


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