IsoEnergy Ltd. (NYSE American: ISOU) (TSE: ISO) and DISA Technologies have completed a deal creating DISA Uranium Corporation.
The transaction combines IsoEnergy’s permitted, past-producing Utah uranium mines with DISA Technologies’ uranium recovery technology and remediation business. Announced on Thursday, the portfolio includes Tony M Mine, Daneros Mine, Rim Mine, Sage Plain Project and Flatiron Project.
In exchange, IsoEnergy received 1,677,350 common shares of DISA Uranium.
Additionally, DISA Uranium closed commitments for a USD$105 million private placement alongside completion of the transaction. IsoEnergy invested USD$33 million and now owns approximately 33 per cent of DISA Uranium on a fully diluted basis.
Consequently, IsoEnergy became the new company’s largest shareholder. Other financing participants included Tembo Capital, BHP Ventures, Galvanize Climate Solutions, Valor Equity Partners and Evok Innovations.
Halliburton Labs and Veriten also participated in the financing.
IsoEnergy CEO Philip Williams said the deal gives the company meaningful exposure to a different type of U.S. uranium business. He said the transaction unlocks value from IsoEnergy’s Utah properties while allowing it to participate in DISA Uranium’s future growth.
Meanwhile, DISA Uranium CEO Greyson Buckingham described the combination as an important step toward building a major domestic uranium company. He pointed to the company’s established assets, recovery technology and financial backing as foundations for its strategy.
DISA Uranium now plans to pursue uranium production, abandoned-mine cleanup and domestic processing capacity at the same time.
Tony M Mine is expected to become an early priority among the Utah assets. Furthermore, DISA Uranium intends to advance remediation work involving uranium-bearing waste from abandoned mines across the western United States.
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Utah gives DISA several existing projects
The company uses patented High Pressure Slurry Ablation technology, known as HPSA, to separate valuable minerals from lower-value rock. The process can reduce the amount of material requiring further processing, potentially lowering costs and reducing waste.
Additionally, DISA Uranium plans to use HPSA to recover uranium and vanadium from material left at abandoned mines. The company holds a U.S. Nuclear Regulatory Commission licence covering treatment and recovery of abandoned uranium mine waste across multiple sites.
That licence covers material that may still contain recoverable uranium despite being left behind by earlier mining operations.
However, the company’s strategy extends beyond recovering material from historical waste. It also intends to restart conventional production from its acquired uranium properties and develop domestic processing capacity.
The Utah portfolio gives DISA Uranium several existing projects rather than requiring it to build a conventional resource base from scratch. In addition, the portfolio includes mines that previously produced uranium and already hold permits.
The company is headquartered in Casper, Wyoming, and describes itself as a veteran-led uranium recovery and production business.
Its broader plan focuses on turning American uranium ore and historical mine waste into material for the domestic nuclear fuel supply. Subsequently, DISA Uranium expects to combine mine development with remediation projects as it expands operations.
