Uranium Energy Corp (NYSE American: UEC) has purchased a stake in three exploration-stage projects in the Athabasca Basin in Saskatchewan which has the largest uranium deposits in the world.
Uranium Energy bought the deposits from Rio Tinto Exploration Canada Inc. –a subsidiary of Rio Tinto Group (LSE: RIO) (ASX: RIO)– for $1.5 million to acquire a portfolio of exploration-stage projects in the Athabasca Basin
The acquisition includes a 60 per cent equity stake in the Henday Lake joint venture, full ownership of the Milliken project, and a 50 per cent equity stake in the Carswell joint venture project. This addition bolsters UEC’s holdings in the Athabasca Basin by around 44,000 acres, bringing its total to around 1 million acres.
The Henday project, strategically located less than five kilometers north of the Roughrider project, is expected to offer significant regional synergies. The Carswell project, with its proximity to the former Cluff Lake operation, boasts uranium showings that mirror the mineralization types of the erstwhile Cluff Lake operation.
Meanwhile, the Milliken project extends UEC’s Hidden Bay project’s Wolf Lake trend, showcasing multiple uranium showings over a span of 19 km.
Uranium Energy stock went up slightly on Tuesday to $4.16 on the New York Stock Exchange.
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The transaction was fully funded with UEC’s cash on hand. UEC had $125.4 million of cash and liquid assets, with no debt, as of their latest quarterly filing for the period ending April 30, 2023.
“Since the acquisitions of Roughrider and UEX last year, the Canadian team has issued technical reports on the Roughrider, Horseshoe-Raven, and the Shea Creek deposits,” UEC CEO Amir Adnani said.
We have also added James Hatley as Vice President Production, Canada to the team to augment the advancement of our Canadian assets towards production.”
UEC is described as the fastest-growing supplier of fuel for the green energy transition to a low-carbon future. The company is advancing low-cost, environmentally friendly In-Situ Recovery (ISR) mining uranium projects in the US and high-grade conventional projects in Canada.
The Athabasca Basin in northern Saskatchewan, Canada, is home to some of the world’s highest-grade uranium deposits. Mines such as Cigar Lake and McArthur River have ore grades that are significantly higher than the world average. The uranium in this region is found in unconformity-related deposits.
Some major players mining for uranium include Cameco Corporation (TSX: CCO)(NYSE: CCJ), which produces 18 per cent of uranium worldwide. Other companies include, NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) and Denison Mines Corp. (TSX: DML) (NYSE American: DNN).
