Consolidation within the uranium space is starting, as interest in the sector heats up. Uranium Energy Corp (NYSE: UEC) this morning announced that it has entered into a definitive agreement to acquire Uranium One Americas, a subsidiary of Uranium One Inc.
The transaction will see UEC acquire assets that are primarily focused in Wyoming in a region known as the Powder River Basin. Assets in the region include the Irigaray plant, which has a licensed processing capacity of 2.5 million pounds of U308, as well as the Christensen Ranch ISR Project, which will combine with the firms Reno Creek Project.
Also included in the deal is 37.6 million pounds of historic resource uranium, as well as a land package of 100,000 acres.
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The purchase price for the assets is pegged at US$112.0 million, which is fully funded from UEC’s balance sheet. The transaction is expected to make the firm the largest uranium firm in America.
A timeline for closing was not provided, with the purchase being subject to regulatory approvals.
Uranium Energy Corp last traded at $5.08 on the NYSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
