Western Australia’s nuclear fuel supplier Paladin Energy Limited (ASX: PDN) (OTCQX: PALAF) has obtained 100 per cent ownership in Newfoundland and Labrador’s Michelin uranium mining operation, raising its stake from the previous 75 per cent held.
On Wednesday, Paladin announced the acquisition of the former joint venture, which will now be solely developed by its wholly-owned subsidiary Aurora Energy.
“As a result of the funding and dilution provisions of the Michelin joint venture agreement, the Michelin nominees have surrendered their 25 per cent participating interest to Paladin’s subsidiary Aurora,” said Paladin on Wednesday. The company did not specify who held the 25 per cent interest previously.
The Michelin deposit is one of the largest uranium resources in North America and the 52,250 hectares of mineral licenses the company holds are comprised of a total of six deposits with an estimated 127.7 million pounds of the radioactive metal. Paladin says there is potential to expand that resource through further extension drilling and greenfield discovery.
The jurisdiction hosting the project has had approximately US$75 million worth of exploration work to date. Paladin said it recently completed an extensive geological review, which included an assessment of historical data along with an airborne gravity-gradiometry survey — which can provide precise data on terrain depth, shape and orientation from above.
“The Michelin project is an exciting growth asset for Paladin, given its strategic land position in a premier mining jurisdiction,” said Paladin’s CEO Ian Purdy. The company says it will be providing an update on future activities at the site mid-way through next year.
Night shot taken at the Michelin uranium project. Photo via Paladin Energy
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Nuclear energy is gaining popularity in recent days
Combined with the rising price of uranium, Paladin says the number of nuclear reactors throughout the globe is continuing to grow. A total of 60 are currently under construction throughout 15 countries, according to the company.
Paladin aims to commence commercial production at its flagship Langer Heinrich uranium asset in Namibia next year, which is valued at approximately US$118 million.
Paladin’s shares rose by 2.7 per cent on Wednesday to C$0.83 on the Australian Securities Exchange and have been on a steady incline since January, rising by almost 44 per cent.
The company has a market capitalization of approximately US$1 billion.
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ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF) is another company developing major Canadian uranium assets and capitalizing on the rising demand for uranium and nuclear energy amidst the transition to net-zero.
The company’s land package is the largest in the Athabasca Basin, spanning a vast area of 3.4 million acres — one of the world’s best uranium mining jurisdictions with abundant resources.
ATHA shares stayed flat at $1.16 Wednesday on the Canadian Securities Exchange and have been on a steady incline for the past month, rising by almost 21 per cent. The company is well-funded and currently has a cash balance of $25 million.
ATHA Energy is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
