Saturday 19th September 2020

Resource Clips

Athabasca Basin and beyond

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Denison reports $45.48-million three-month net loss, updates operations

Denison issued its Q3 financials November 7, reporting a net loss of US$45.48 million or $0.10 a share, and $53.38 million or $0.12 a share for three months and nine months ending September 30. The figures include a $35.65-million impairment on the Mutanga project in Zambia. The nine-month amount also includes a $92.65-million loss from discontinued operations.

Three- and nine-month exploration spending came to $4.85 million and $12.06 million, compared to $3.27 million and $10.68 million for the same periods in 2012. Thanks to its acquisition of Fission Energy, Denison has increased its 2013 Canadian exploration budget to $12.1 million from $9.9 million.

The company has 66 uranium exploration or development projects in Canada, Zambia, Namibia and Mongolia but its primary focus remains the eastside Athabasca Basin, where Denison now has interests in 49 projects. The company has stated it will spin out its offshore projects on closing its acquisition of Rockgate Capital TSX:RGT.

Some other Denison milestones this year include a resource update for Waterbury Lake (held 60%), high-grade drill results from Wheeler River (also 60%) and commissioning the McClean Lake mill (22.5%), which will process feed from Cigar Lake.

MPVC files 43-101, moves towards Tier 2 mining issuer designation

Part of its effort to meet TSXV requirements as a Tier 2 mining issuer, MPVC Inc TSXV:MVC.H filed a 43-101 technical report on the Northwest Manitoba project, the company stated on November 7. MPVC optioned an 80% interest in the 143,603-hectare property from CanAlaska Uranium TSX:CVV in September.

Some $7.8 million of work by CanAlaska, including prospecting, sampling and geophysics, found uranium mineralization in four distinct settings, according to the report. One drill target has been identified, while nine other areas merit follow-up work, the study adds. The company proposes to raise and spend $600,000 for radon and ground radiometric surveys and soil sampling on the property’s Maguire Lake trend. MPVC hopes to follow with a drill program in early 2014.

CanAlaska confirms TSXV listing application, grants options

CanAlaska, meanwhile, confirmed on November 5 that it applied for a TSXV listing. The company gets bumped off the TSX on December 2 for falling below the minimum market cap.

CanAlaska also announced 1.19 million options exercisable at $0.12 for five years. The company holds interests in 18 uranium projects, eight with 43-101 reports.

This week’s episode of the Boss/Beruschi battle of the B claims

More accusations, allegations, denunciations and recriminations marked a typical week in the battle of the B claims. Resolution of the dispute between Boss Power TSXV:BPU and Morning Star Resources boss Anthony Beruschi depends on whose slate wins election to Boss’ board on November 14. At issue is the price of Beruschi’s B claims. Boss must acquire and turn them over to the province of British Columbia to receive a $30-million settlement that followed B.C.’s sudden ban on uranium exploration in 2009. Possibly the cost of distributing all those angry press releases will take another chunk out of the payout.

Boss’ are posted here; this week’s Beruschi batch here, here, here and (whew!) here.

Here’s last week’s episode, with a link to earlier developments.

In brief…

On November 4 Uranium Participation Corp TSX:U reported its October 31 estimated net asset value came to $516.8 million or $4.86 per share, compared with $513.2 million or $4.83 per share the previous month. Managed by a Denison subsidiary, the company invests in holdings of U3O8 and uranium hexafluoride (UF6).

On November 5 Majescor Resources TSXV:MJX announced TSXV approval of a 1:10 share consolidation to take effect November 7. The company’s projects include a 40%/60% JV with Strateco Resources TSX:RSC on the Mistassini uranium project in Quebec.

On November 7 European Uranium Resources TSXV:EUU stated it had renegotiated a private placement with Global Resources Investments to offer 12.5 million shares at $0.10 for $1.25 million. The previous terms were eight million shares at $0.125 for $1 million. The increase would give Global about 19.3% of EUU shares, up from 13% offered in the earlier deal. Global plans to re-register as a publicly traded investment trust, list on the LSE and issue EUU 751,744 shares at one British pound. Last month EUU expressed confidence its Kuriskova exploration licence would be renewed despite opposition from Slovakian activists.

Aldrin Resource TSXV:ALN announced on November 7 it closed a first tranche of 9.72 million units at $0.10 for $972,500. The previous week the total offer was increased from $1 million to $1.5 million. Proceeds will go to Triple M exploration and general working capital. In early October Aldrin acquired the Virgin property around the Basin’s south-central edge.

Also on November 7 Delta Uranium TSXV:DUR.H was hit by a cease trade order for failing to file documents.

On November 8 Lions Gate Metals TSXV:LGM announced TSXV approval for its 1:4 reverse split, to begin post-consolidation trading on November 11. Last September the company announced an agreement to assign its Whitford Lake property to Canadian Uranium Corp, which intends to seek a CNSX listing.

NAFTA challenge looming over Quebec’s uranium exploration ban

Canada could face a NAFTA suit over Quebec’s refusal to grant a uranium exploration licence, the Financial Post reported on November 7. Strateco president/CEO Guy Hebert told the paper that American investors are preparing to sue under Chapter 11 of the North American Free Trade Agreement, which allows investors to seek compensation if they believe a government policy has hurt their investment. The FP added, “The claim is against the federal government even if the matter concerns a province.”

Although the Canadian Nuclear Safety Commission granted Strateco’s Matoush project an underground exploration licence, the James Bay Cree Nation objected to the activity on its reserve, where the project is located. Last March Quebec suspended all uranium activity pending a review. Strateco responded with a series of legal challenges against the province’s “illegal, abusive decision.”

Hebert told the FP he advised the investors to wait for the conclusion of his own action. He declined to say which investors were involved. Citing Bloomberg data, the paper said Strateco’s three biggest shareholders are “Cayman Islands-based private equity firm The Sentient Group, Toronto-based boutique investment management firm Goodman & Co, and Bank of Nova Scotia.”

Strateco has said its investors have poured $125 million into Quebec.

Read more about Strateco’s legal action.

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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