Uranium news from Saskatchewan and elsewhere for August 31 to September 6, 2013
by Greg Klein
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PLS to come under Fission control as Alpha agrees to sweetened takeover offer
The Patterson Lake South partners have come to terms. Joint September 3 news releases from Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU announced a letter of intent to combine the 50/50 joint venture under Fission’s control. The acquisition would cost 5.725 Fission shares for each Alpha share while each company would spin out its non-PLS assets into a new entity. Alpha gets no place on Fission’s management team but would nominate two directors to Fission’s five-person board.
Shareholders of each company will get shares in their respective spincos, which will hold all non-cash and non-PLS assets. Each spinco will get $3 million in start-up cash.
Pending all shareholder and regulatory approvals, the companies hope to consummate by November.
Fission/Alpha report best PLS hole so far
With the ink barely dry on their LOI, Alpha and Fission released more drill results on September 4—real assays this time, instead of teasing the market with scintillometer readings. And this time, according to Fission president/COO Ross McElroy, a single hole provided “not only the best results to date on the PLS property, but on a level with the best holes within the Athabasca Basin district.”
Sunk on the western part of R390E, the second of four zones extending from southwest to northeast, hole PLS13-075 showed a highlight of:
- 9.08% uranium oxide (U3O8) over 54.5 metres, starting at 61 metres in vertical depth
- (including 21.76% over 21.5 metres)
Additional results from the same hole showed:
- 0.09% over 0.5 metres, starting at 57.5 metres
- 0.07% over 7.5 metres, starting at 118 metres
- 0.24% over 11.5 metres, starting at 130 metres
- 0.65% over 2 metres, starting at 146.5 metres
- 0.71% over 1.5 metres, starting at 151 metres
- 0.06% over 0.5 metres, starting at 157 metres
- 0.27% over 2.5 metres, starting at 160 metres
- 0.27% over 1 metre, starting at 176.5 metres
True widths were unavailable. The vertical hole reached a total depth of 248 metres and was collared 30 metres grid west of PLS13-061, which last June showed 1.39% U3O8 over 23.5 metres starting at 110 metres, and included 4.34% over 6 metres.
The $6.95-million campaign will include additional drilling on the R390E zone, which has the largest of the lake water radon anomalies found last winter.
First tranche brings Lakeland Resources $738,000
Lakeland Resources TSXV:LK closed the first tranche of its private placement, issuing 5.7 million units at $0.10 and 1.35 million flow-through units at $0.125 for gross proceeds of $738,770, the company announced on September 3. The money goes to Athabasca Basin uranium exploration and general working capital.
Lakeland holds nine Basin properties and currently focuses on the Riou Lake project’s Gibbon’s Creek area, which has at least 23 historic holes. The project shows shallow depths to basement rock and also has radioactive boulders grading up to 11.3% uranium. Situated on high ground, the property can be drilled year-round.
Energy Fuels completes Strathmore takeover
Its acquisition of Strathmore Minerals TSX:STM now complete, Energy Fuels TSX:EFR has taken “an important step toward achieving our goal of becoming the dominant uranium producer within the U.S.,” according to joint statements issued September 3. Energy Fuels currently holds No. 2 position, with guidance of about 1.15 million pounds uranium oxide (U3O8) for fiscal 2013. The company added that the United States “is the world’s largest nuclear power market and heavily dependent on imported uranium for over 90% of its supply requirements.” Read more about the acquisition here and here.
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