Friday 28th October 2016

Resource Clips

Athabasca Basin and beyond

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Brades Resource signs LOI for 50% of Fission’s Clearwater West

Brades Resource TSXV:BRA signed a letter of intent with Fission to earn up to 50% of the latter’s PLS-adjacent Clearwater West property. Announced October 15, the transaction would have Brades fund $5 million within three years, including $700,000 in year one, and issue Fission 9.9% of Brades’ shares. Fission, which would act as project operator, would retain a 2% NSR.

Near-term plans for the 11,835-hectare property include an airborne electromagnetic and magnetics survey, as well as a high-resolution radiometric survey, with ground geophysics, geochemical and radon surveys likely to follow in winter.

Under the Alpha buyout terms, Fission’s non-PLS assets will be spun out to a new company.

In July Brades announced its Lorne Lake acquisition in the western Athabasca Basin.

In brief…

Responding to media reports, Paladin Energy TSX:PDN stated on October 15 that its two mines are operating at record levels, costs are being reduced and the company “has reasonable confidence in an outcome to alleviate shareholder concerns regarding debt and expects to provide more detail in relation to this transaction in November.”

On October 15 Uranium Energy Corp NYSE MKT:UEC released its quarterly and fiscal 2013 report updating financials and operations for its Hobson plant and Palangana mine in Texas, as well as other projects in Texas, Colorado and Paraguay. The company sold 220,000 pounds U3O8 for $9 million during the year. The report follows a September announcement that the company would reduce production and reassess projects. On October 18 UEC reported a definitive agreement with three institutional investors to provide $7.1 million in financing for the Burke Hollow in-situ recovery project in Texas.

On October 15 Vulcan Minerals TSXV:VUL announced receipt of exploration permits covering its 91,648-hectare Athabasca Border property in Alberta.

Energy Fuels TSX:EFR reported October 16 it closed a previously announced $5-million private placement. The company, which supplies about 25% of American uranium production, acquired Strathmore Minerals in September.

Makena Resources TSXV:MKN announced October 17 a non-brokered private placement up to 10 million units at $0.12 for $1.2 million. Each unit consists of one share and one transferable warrant exercisable at $0.18 for five years. Proceeds will go to the company’s 50% Patterson claims optioned in August and general working capital.

Uranium One TSX:UUU expects to de-list from the TSX on October 21 and from the JSE the following day, the company announced on October 18. Russia’s state-owned Rosatom has closed its $1.3-billion takeover.

Majescor Resources TSXV:MJX announced AGM results on October 18, including a 1:10 reverse split subject to regulatory approval.

End in sight for Canada’s foreign ownership ban on uranium mines

Uranium news from Saskatchewan and elsewhere for October 12 to 18, 2013

Canada’s current foreign ownership laws prevent AREVA
from putting its majority-owned Kiggavik project into production.

Foreign companies might finally win the right to mine Canadian uranium under a trade deal announced October 18. Canada and the European Union came to an agreement in principle for a Comprehensive Economic Trade Agreement that would drop the requirement that foreign companies could hold no more than 49% of a uranium mine. Lifting the ban could spur exploration funding as well as M&A.

Although the agreement might not be ratified for two years, it drew praise from Saskatchewan Premier Brad Wall and Rio Tinto, according to a Canadian Press story published in the Saskatoon StarPhoenix. Reuters added that Canada agreed to the condition after “intense lobbying” by AREVA and Rio Tinto.

There’s no such limit on uranium exploration or development projects. Rio Tinto bought out Hathor Exploration early last year in a $654-million deal involving the eastside Athabasca Roughrider deposit. Through its Canadian subsidiary, the French government’s majority-held AREVA has joint ventured its way into several Canadian projects. Its advanced stage Kiggavik project proposed for Nunavut would entail four open pits and an underground mine. AREVA holds 64.8% of Kiggavik, along with JCU Exploration Canada (33.5%) and DAEWOO Corp (1.7%).

Under current rules, neither project could come into production. On AREVA’s behalf, the government of Nunavut lobbied Ottawa to end the restrictions in 2008, the Nunatsiaq News reported.

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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