UEC will double its resources thanks to the acquisition of UEX: Uranium & Fuel
June 14, 2022
Texas-based Uranium Energy Corp (UEC) has agreed to acquire Canada-based UEX Corporation to create a combined and diversified portfolio of uranium production and development assets.
UEX holds an 82.8% stake in the Christie Lake project (Image: UEX)
UEX’s portfolio of 29 uranium projects, based in Saskatoon in Canada’s Athabasca Basin, includes five that are at the “advanced resource stage” and are already in partnership with established uranium mining companies . This means UEC can remain operationally focused in the United States – where it has near-term production-ready assets – while benefiting from a new development pipeline with significant exploration potential in Canada. , did he declare. UEC said the acquisition will double its uranium resources in world-class, politically stable uranium mining jurisdictions and, pro forma, give it the “largest uranium portfolio exclusively concentrated in the Americas.”
Pursuant to a definitive agreement between the two companies, UEC will acquire all of the issued and outstanding common shares of UEX by way of a statutory plan of arrangement under the Canada Business Corporations Act. At closing, existing shareholders of UEC and UEX will own approximately 86.3% and 13.7%, respectively, of UEC based on the common shares currently outstanding.
UEC’s acquisition of Uranium One Americas (U1A) in December 2021 has received a very positive response from shareholders and the market, said UEC President and CEO Amir Adnani. “The strategic acquisition of UEX shares the same characteristics and will expand our diversified portfolio in the politically stable and mining-friendly jurisdiction of Canada. It is also the largest North American M&A transaction in the uranium sector after the acquisition of U1A.
The combination of the companies’ “very strong and complementary portfolios” will provide UEX shareholders with “substantial exposure” to U.S. production-ready in situ leach (ISL) mining assets and UEC’s physical uranium portfolio, it said. said UEX President and CEO Roger Lemaitre. . “I look forward to seeing UEC’s management team continue to execute on its growth strategy and build on the success we’ve already had with the UEX asset portfolio,” he said. he adds.
UEX’s portfolio includes: a 49.1% interest in Shea Creek (operated and 50.9% owned by Orano), with some 67.6 million pounds of U3O8 (26,000 tU) of indicated resources and 28.1 million pounds of U3O8 inferred resources (100% basis) – one of the largest undeveloped deposits in the Athabasca Basin; 100% ownership of the Horseshoe-Raven open pit mineable project, which is located near Cameco’s Rabbit Lake mill and has an indicated resource of 37.4 million pounds of U3O8; 82.8% interest in the Christie Lake asset in the Athabasca Basin with 20.4 million pounds U3O8 of inferred resources (100% basis); 16.9% ownership in the Kiggavik projects (Nunavut) and 15% in the Millennium projects (Saskatchewan) in the feasibility phase; and a 5% interest in Wheeler River, which is operated and 95% owned by Denison. Other resource-level, mid-term, and baseline projects in UEX’s portfolio offer the opportunity for further resource growth.
UEC’s assets include a Wyoming hub-and-spoke ISL portfolio of seven satellite projects, centered on the Irigaray processing plant with licensed production capacity of 2.5 million pounds per year; a hub-and-spoke ISL portfolio in Texas consisting of four satellite projects centered on the 2 million pound per year Hobson processing plant; a physical U3O8 portfolio of 5 million pounds of uranium stored in the United States and a 16% stake in pure uranium royalty company Uranium Royalty Corp.
Subject to approvals, the transaction is expected to close in the third quarter of this year.
Research and writing by World Nuclear News