Saturday 19th September 2020

Resource Clips

Athabasca Basin and beyond

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NexGen finishes Radio summer campaign, offers $3.53-million placement

NexGen Energy TSXV:NXE wrapped up its initial drill campaign on the northeastern Athabasca Basin’s Radio project, two kilometres east of Rio Tinto’s Roughrider deposits. Nine holes totalling 3,473 metres tested five summer-accessible locations, the company reported on July 30. Assays are still to come.

Ur-Energy Lost Creek

Shown are pressure vessels and piping at Ur-Energy’s
newly producing Lost Creek ISR operation in Wyoming.

Targets were chosen after reviewing airborne magnetic and electromagnetic surveys from 2011 and ground resistivity and gravity work conducted this year.

In a statement accompanying the release, NexGen CEO Leigh Curyer said the holes “confirmed these zones contain the basement geology, alteration and structural features that host uranium mineralization elsewhere in the Athabasca Basin.” The company plans an expanded winter campaign “uninhibited by the presence of surface water,” he added. NexGen has an option to earn a 70% interest in Radio.

The previous week NexGen stated it had doubled the summer drill plans for Rook 1, immediately northeast of PLS.

On August 1 the company announced it’s nearly doubling the size of a non-brokered private placement originally offered on July 29. Now the company’s offering about 10.1 million units at $0.35 for proceeds up to $3.53 million. Each unit consists of one share and one-half warrant, with each whole warrant exercisable for one share at $0.55 for 18 months. Proceeds will go to Athabasca Basin exploration, general administration and corporate purposes.

NexGen also granted 3.16 million options to insiders exercisable for five years at $0.40.

Quebec court turns down Strateco action against government

Strateco Resources TSX:RSC suffered a setback in a legal battle prompted by the Quebec government’s moratorium on uranium exploration. On August 1 the company announced a court rejected its application for a safeguard measure that would have ordered the government to pay Strateco between $420,000 and $800,000 each month from June to September 2013.

The court based its decision partly on an inability to assume what the final ruling will be on Strateco’s key application for mandamus, the company stated.

Strateco emphasized it will continue the legal proceedings underway and has served notice to Quebec’s ministère du Développement durable, de l’Environnement et des Parcs that the company intends “to claim damages for the prejudice it has suffered, including a $16-million loss in market capitalization.”

The company said it has spent over $120 million on its Matoush uranium project, to which Strateco announced an $87-million impairment last May.

UEC gets $20-million loan

American producer Uranium Energy Corp announced a US$20-million credit facility from Sprott Resource Lending Partnership and CEF (Capital Markets) Ltd on July 31. Proceeds go to development, operation and maintenance of UEC’s Texas ISR projects including the Palangana mine, Hobson processing plant and Goliad, a mine under construction.

UEC has already received an initial $10 million, with two additional $5-million draw-downs available. The two-year term bears 8% interest, along with a 4% undrawn standby fee. UEC will also pay a 4.5% fee in shares within 12 months and issue the lenders a total of 2.6 million warrants exercisable for one share at $2.50 for three years.

CEF is owned by CEF Holdings Ltd, which in turn is held 50% by Cheung Kong Holdings Ltd and 50% by the Canadian Imperial Bank of Commerce TSX:CM. Cheung Kong is a member of the Hong Kong-based Cheung Kong Group of companies, which has a combined market cap of more than $100 billion. UEC president/CEO Amir Adnani said, “As we look to develop strategic ties in Asia, the fastest-growing market for nuclear power, it is important to establish relations with one of the region’s largest conglomerates.”

Aldrin appoints Harrison Cookenboo VP of exploration

Aldrin announced the appointment of Harrison Cookenboo as VP of exploration and development on August 1. With nearly 30 years of exploration experience, he wrote the 43-101 technical report for Aldrin’s Triple M project and planned the current field program for the property adjacent to Alpha/Fission’s PLS.

The program continues with surface radon sampling and surficial sediment mapping in August and September, with drilling planned for January.

Azincourt announces IR contract

Azincourt Uranium TSXV:AAZ (formerly Azincourt Resources) announced an investor relations agreement with Dwane Brosseau on August 1. The half-year contract pays $7,500 a month, with options to buy up to 175,000 shares at $0.25.

The previous week Azincourt and JV partner Fission announced a $530,000 summer campaign for their Patterson Lake North project.

Uranium Participation reports $507.9-million NAV

Uranium Participation Corp’s TSX:U July 31 estimated net asset value came to $507.9 million or $4.77 a share, the company reported on August 1. That compares with $594 million or $5.59 a share on June 30.

Managed by a subsidiary of Denison Mines TSX:DML, the company invests in holdings of U3O8 and uranium hexafluoride (UF6).

Majescor extends filing delay, offers $150,000 private placement

In a second bi-weekly default status report released July 31, Majescor Resources TSXV:MJX stated it now expects to file its 2013 annual financial statements by August 12. The company has been under a management cease trade order after it missed the June 28 deadline.

On July 30 Majescor offered a non-brokered private placement of up to 7.5 million units at $0.02 for proceeds up to $150,000. Each unit will consist of one share and one warrant, with each warrant exercisable for one share for two years at $0.05 in year one and $0.10 in year two. Proceeds would go toward existing accounts payable and working capital purposes. The offering is subject to approval under TSXV temporary relief measures.

Majescor’s projects include a 40%/60% JV with Strateco on the Mistassini uranium project in Quebec, as well as a gold-base metals-graphite JV in Madagascar, and gold and copper-gold projects in Haiti.

Uranium Focused Energy Fund and MBN Corp to merge

Uranium Focused Energy Fund TSX:UF.UN and MBN Corp TSX:MBN hope to complete a merger on or about August 28, the two companies announced August 1. The deal would leave MBN as the continuing entity. The exchange ratio would be calculated as UF.UN’s NAV divided by the NAV per equity share of MBN on the business day immediately before the merger.

The merger’s costs and expenses will be borne by Middlefield Ltd, which acts as manager for both companies. UF.UN invests mainly in uranium-related companies, with additional investments in other energy-related companies.

Nuinsco increases Victory Nickel interest

Nuinsco Resources TSX:NWI boosted its interest in Victory Nickel TSX:NI to about 12.24%. On August 1 Nuinsco announced it acquired 53.79 million units at $0.024 for $1.29 million. Nuinsco’s projects include the Diabase Peninsula uranium property on the Athabasca Basin’s south-central rim.

Uranium Resources to host conference call

Uranium Resources will host a Q2 tele-conference and webcast on August 9 to discuss its Texas and New Mexico properties. The former ISR producer said it “has a number of initiatives underway to return the company to production,” according to its July 29 statement.

A new nuclear threat?

Widespread forecasts of increasing uranium demand overlook an alarming possibility—that “the end of the cheap uranium supply will result in a chaotic phase-out scenario with price explosions, supply shortages and possible electricity shortages in many countries.”

That’s the dire prediction of Michael Dittmar, a nuclear physicist at the European Organisation for Nuclear Research and the Swiss Federal Institute of Technology. His peer-reviewed study, The End of Cheap Uranium, was featured in a July 2 Guardian commentary by Nafeez Ahmed, executive director of the Institute for Policy Research & Development.

Dittmar forecasts global production peaking at about 58 kilotonnes in 2015. (The World Nuclear Association says 58.39 kilotonnes were produced in 2012.) By 2025 Dittmar sees 54 kilotonnes a year, further dropping to 41 kilotonnes or less by 2030.

“This amount will not be sufficient to fuel the existing and planned nuclear power plants during the next 10 to 20 years,” Dittmar maintains. “In fact, we find that it will be difficult to avoid supply shortages even under a slow 1%/year worldwide nuclear energy phase-out scenario up to 2025. We thus suggest that a worldwide nuclear energy phase-out is in order.”

His advice, however, runs contrary to expansion plans for nuclear energy around the world.

Nuclear war in South Korean parliament

A brawl broke out in South Korea’s parliament on August 2, incited by ongoing controversy over the country’s fourth reactor. Opponents want it scrapped even though construction has almost finished, the World Nuclear News reported. South Korea’s opposition party insisted the project be cancelled without the referendum proposed by the government. As this video shows, passion led to punches.

A vote on whether to hold the referendum had to be postponed.

See previous uranium news updates:

Read analyst David Talbot’s insights about uranium and the Athabasca Basin in a global context.

Read about uranium supply, demand and prices.

Disclaimer: Skyharbour Resources Ltd is a client of OnPage Media Corp, the publisher of Neither OnPage Media nor its owner hold a stock position or options in Skyharbour Resources.

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