Mike Fagan,
Editor
Sept. 7, 2021
Azarga Uranium (TSX: AZZ)(OTC: AZZUF) — currently trading around C$0.65 per share — has entered into a definitive agreement with enCore Energy (TSX-V: EU)(OTC: ENCUF) whereby enCore will acquire all of the issued and outstanding common shares of Azarga at a significant premium.
Under the terms of the agreement, Azarga shareholders will receive 0.375 common shares of enCore for each Azarga common share held — implying a share price of ~C$0.70 per Azarga common share using the most recent price for enCore of approximately C$1.85 per share.
The merger is a smart move for both companies as an expanded uranium resource base in stable jurisdictions at a time when uranium prices are rising is accretive to shareholders of both companies.
The proposed amalgamation will serve to consolidate an industry leading pipeline of exploration and development stage in-situ recovery (ISR) uranium projects located in the United States, including the licensed Rosita & Kingsville Dome past producing uranium production facilities in South Texas.
Azarga president & CEO, Blake Steele, commented via press release:
"We are pleased to partner with enCore as a result of this transaction, while realizing a material premium for shareholders in the process. Scale is important in the natural resource sector and this transaction will position the new company among the top uranium miners based in the USA. enCore possesses a great depth of uranium development and mining experience within its management team and board of directors. As such, we are confident that the combined portfolio will be in good hands for the benefit of both sets of shareholders."
The proposed merger also leverages Azarga’s advanced stage Dewey Burdock development project in South Dakota which has been issued its key federal permits; the PEA-stage Gas Hills Project located in Wyoming; and a portfolio of resource stage projects throughout the United States.
The combined company will possess a uranium resource base of 90 million pounds in the measured & indicated category, 9.9 million pounds in the inferred category, as well as 68.4 million pounds in the historic category.
Our own Gerardo Del Real of Junior Resource Monthly has been hot on the uranium uptrend this year… repeatedly calling for a rise in the commodity pricing for uranium citing favorable supply/demand fundamentals along with the establishment of the Sprott Physical Uranium Trust.
As predicted, the price of uranium has been on an absolute tear this year from the US$25 per pound level in February to right around US$40 per pound now… and that may be just the start of what’s to come for a sector that’s been long, long overdue for a sustained resurgence.
In fact, in his just-released August issue of Junior Resource Monthly, Gerado told his paid subscribers:
“The uranium names are all about to run much, much higher and I’d be surprised if Azarga makes it out of 2021 without being bought out.”
I can tell you from experience, these are not wild predictions. Gerardo has the ear of many of the biggest names in the broader natural resource sector… and he distills those insights into actionable market strategies designed to generate dramatic short-term gains for his subscribers.
In fact, Gerardo has a brand new uranium recommendation this week for his members. He discusses it in this short video:
(Click to Get Gerardo’s Latest Uranium Recommendation)
Also, be sure to click here for our feature report on Azarga Uranium.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest readers.
[leadgenform slug="rsd_rsd-story_kutcho"]