Saturday 19th September 2020

Resource Clips

Athabasca Basin and beyond

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WASP finds anomalous lake sediment samples, new target area

The four-company Western Athabasca Syndicate Project announced lake sediment geochemical results and a new target area on October 10. Anomalous uranium levels were found in 133 samples. “In most cases the uranium and pathfinder element anomalies correlate with areas of interest generated independently through the interpretation of airborne VTEM and radiometric geophysics, radon-in-water samples and historic data reviews,” the alliance stated. A concentration of those anomalies indicates a new target area, Montgrand Lake, on the 246,643-hectare Preston Lake property contiguous to the south and west of PLS.

The program has also included airborne VTEM-Plus and radiometric surveys, mapping, prospecting, soil sampling, biogeochemical sampling and radon sampling. Additional results are pending. The syndicate consists of Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY.

B.C. might rescind $30-million payout as Boss/Beruschi battle continues

Demands and allegations continue to fly in both directions as the battle of the B claims rages on. Last week’s episode began October 8 with Boss Power TSXV:BPU calling on Morning Star Resources president Anthony Beruschi to deliver his B claims to court, as he offered to do the previous week, but without Beruschi’s condition that Boss directors resign. The claims must be transferred to the province of British Columbia as part of the terms of a $30-million government settlement with Boss following B.C.’s sudden ban on uranium exploration in 2009. Boss noted that B.C. has stated it might try to rescind the settlement because of the dispute.

Two days later Beruschi refused, blaming the delays squarely on Boss. The battle will likely continue up to Boss’ shareholders meeting, which Morning Star expects to be held by November 14. Read more, if you have the stamina, here, here and here.

Denison wants BCSC to act on Rockgate’s “improper defensive tactics”

Uranium news from Saskatchewan and elsewhere for October 5 to 11, 2013

Pre-feas work is now underway at Rockgate’s Mali project.

Another cross-company power struggle has gone to the B.C. Securities Commission. On October 8 Denison Mines TSX:DML stated it asked the BCSC to intervene in a ”tactical step” by Rockgate Capital TSX:RGT to “frustrate” Denison’s takeover offer. Denison claimed that Rockgate tried to shift decision-making power by granting 11 million options representing almost 10% of the company’s outstanding shares “principally to directors and senior officers.” Denison also stated that Rockgate granted new or enhanced change of control benefits to directors and management.

The next day Rockgate responded that Denison’s “hostile” bid caused “disruption and uncertainty,” making the incentives necessary so technical staff could continue pre-feasibility work at the company’s Falea project in Mali while directors consider alternatives to the Denison offer.

The BCSC has yet to publicly respond.

Read how Denison’s offer defeated Rockgate’s proposed merger with Mega Uranium.

Read more about uranium merger-and-acquisition activity.

European Uranium reports on financing, Slovakia exploration licence, new CFO

European Uranium Resources TSXV:EUU announced October 11 a $1-million financing in which Global Resources Investment Ltd would acquire eight million shares at $0.125, resulting in an approximately 13% interest in EUU. The deal depends on Global re-registering as a publicly traded investment trust and listing on the London Stock Exchange. The consideration to EUU would be 604,485 Global shares valued at about $1 million.

AREVA Resources Canada would then have the right to buy 585,846 EUU shares for $73,231 to maintain its 7.3% ownership.

On October 10 EUU stated that an amendment to Slovakia’s geology act bodes well for the renewal of the company’s Kuriskova exploration licence. The renewal had been challenged by the country’s general prosecutor following legal action by anti-uranium mining activists. The amendment confirms that unless the size of the licence changes, the licence can be renewed by the environmental minister without input and approval from municipalities and regional governments, the company stated. As a result, EUU expressed confidence that its renewal will be approved.

With the licence valid during the review period, work continues on Kuriskova’s feasibility study, scheduled for release late this year or early next.

On October 7 the company reported that Len Goldsmith had been appointed CFO to replace Doris Meyer, who retired.

In brief…

On October 8 Karoo Exploration TSXV:KE announced the closing of 4.24 million units at $0.08 for $339,280. The company also issued 214,120 finder’s warrants. The previous week Karoo, formerly known as United Uranium, announced an LOI to acquire three Zambian properties. The company holds uranium exploration licences in Tanzania.

Eagle Plains Resources TSXV:EPL announced October 8 that Ryan Kalt had resigned as director. Eagle Plains holds over 35 properties, including uranium prospects in Saskatchewan. Kalt has staked a number of Basin claims and is involved in other uranium companies.

Athabasca Nuclear announced October 10 the appointment of Johnathan More and Ian Fleming as directors. More is president/CEO and a director of Aldrin. Fleming is CFO of Gold Royalties Corp TSXV:GRO. They replace Tim Termuende, who stays on the company’s technical committee, and Glen Diduck, who remains CFO. Athabasca Nuclear is a member of the Western Athabasca Syndicate and holds additional uranium properties in Saskatchewan, as well as a gold project in B.C.

Paladin Energy TSX:PDN released its quarterly report October 10, with sales revenue of US$69.2 million from 1.67 million pounds U3O8 at an average price of $41.38. The previous week the company announced further cost-cutting measures.

Also on October 10 Star Uranium announced its name change to Star Minerals Group, using the same ticker TSXV:SUV.

AREVA warns uranium consumers: Buy soon or face soaring prices

Unless utilities secure long-term uranium purchase agreements by 2015, they could face soaring prices according to the head of AREVA’s mining division. In an October 7 Bloomberg article AREVA’s Olivier Wantz said the current historic low, in the $35 range, doesn’t reflect longer-term contracts now being signed for around $54 a pound. He expects even higher prices to come.

Bloomberg added, “Global uranium demand will probably rise 48% by 2023, according to the World Nuclear Association. Sixty-eight reactors are under construction, including 28 in China, 10 in Russia, seven in India and five in South Korea, according to the WNA. About 435 reactors around the world with combined capacity of more than 370 gigawatts already consume about 78,000 tons of uranium concentrate annually, the association said.”

Wantz’s remarks echo comments made in August by Paladin managing director/CEO John Borshoff, who said that “utilities will need to come into the term market soon, in a serious sort of way, in a bid to start filling their needs post-2014, 2015. Price hikes will be severe, I believe, because of these forward shortages…”

See previous uranium news updates:

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

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