Blue Sky Uranium (TSX-V: BSK)(OTC: BKUCF) CEO Niko Cacos on Financing Opportunity in Uranium Bull Market
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of Blue Sky Uranium, Mr. Niko Cacos. Niko, it's so great to have you back on. How are you today?
Niko Cacos: I'm doing very well, Gerardo. How are you?
Gerardo Del Real: I am well. Thank you for asking. Let's get right into it. I saw a news release about a week or so again where Blue Sky announced that it was raising a little bit of cash, not a lot of cash, but a little bit of cash. And I know that you and I share similar sentiments on the bullish case for uranium and the fundamentals, which people much smarter than I describe, as the most bullish uranium fundamentals they've ever seen.
And so when I looked at that and I saw the non-brokered private placement announcement and I saw the price at which you were doing it, I wanted to get together and have a conversation about why this is likely going to be a pretty bargain basement financing as far as the price goes. And that contrasts a lot with the multiple catalysts that the company has here in light of those very bullish uranium fundamentals.
So let's get right into it. You're doing a financing. What are you doing with that cash, Niko?
Niko Cacos: Yes, indeed. We are doing that financing. We announced one. And we announced it, a small one, because the state of the market which has had a bit of a step back and the current low price of the shares.
But because we're expanding our exploration efforts in our field in Argentina to include two additional targets for which we have just very recently begun to receive exploration permit, we want to ensure that the program doesn't get halted for lack of funds. We want to ensure that we're well-funded to continue our exploration efforts on these two very, very promising targets. And that's why we announced the small financing.
Gerardo Del Real: Let's talk about the price. The price and the terms on the financing because both are very, very attractive. Again, I couldn't be more bullish on the uranium space. I think 2023 is going to be an absolute barn burner. As great as 2022 was, I think 2023 is going to be absolutely spectacular. What are the terms on the financing?
Niko Cacos: Well, it's a unit financing. It's being done at 10 cents and the warrant is at 20 cents, which is good for two years. So it's an excellent opportunity for investors to get in almost at seed level in terms of financing for a company that already has a deposit identified. And we're at the stage right now where we're looking to find additional deposits. So we're at a stage where, arguably, it's the best value adding stage of any company, which is identifying more uranium pounds and potentially seeing the company grow.
Gerardo Del Real: So just to be clear, it's a 10 cent financing with a full warrant, good for two years?
Niko Cacos: That is correct.
Gerardo Del Real: Let's talk about the project. The flagship project is Amarillo Grande project in Argentina. Now the Grosso Group, which Blue Sky Uranium is a part of, is responsible for pioneering mining in Argentina. I have to believe you're getting a lot of interest because of the scale of the project. And I have to believe that you wouldn't be raising money at these levels if you didn't think that those two targets that our priority targets, were going to be worth getting out there and putting the truth machine to them.
Niko Cacos: Yeah. Absolutely correct. I mean, these two targets, especially the Cateo Cuatro target, in the past, the reason we identified it is because we were able to get some of the best, highest grade results from any of the targets that we have identified. And now that the permits are coming in, we're quite excited to see what that targets and we're having a very good feeling about that.
And behind, we are the managed by the Grosso Group, and like you said, we were one of the first companies to be involved in Argentina. One, indeed, a pioneer in mining expiration in Argentina. We've had a lot of success in that country. And this project here is very high up on our radar. We are confident that the potential here is to have much, much more than the 23 million pounds that we've already identified. So this has potential to be a 10 bagger or more.
Gerardo Del Real: You mentioned the 23 million pounds that you've already identified. Where's the market cap today?
Niko Cacos: Our market cap today is hovering at around $20-$25 million, so we have a very low market cap. It was higher a while ago but as the entire sector took a step back, I guess our market cap deflated with that. However, our feeling for the uranium sector in general, is very, very positive, it's very, very bullish, in fact. Because the fundamentals haven't changed, we're still seeing more nuclear reactors being built around the world, creating much, much more demand for uranium. And look at the price of the underlying metal, it's still hovering over $50, and that's a long cry from the sub $20 a pound that we were at just only a few years ago.
Gerardo Del Real: For accredited investors, and I should stress that, because obviously it's a private placement that only accredited investors are able to participate in... But for accredited investors that are listening, that like the bullish fundamentals of uranium, that like the fact that you're getting the equivalent of a dollar and a few pennies for each pound of uranium that you've discovered and like the exploration upside and like the stable jurisdiction that Argentina has turned itself into, who should they get a hold of to inquire about participating?
Niko Cacos: Well, they can contact our Investor Relations person. His name's Shawn Perger and he can be reached at email@example.com.
Gerardo Del Real: Excellent. And that's P-E-R-G-E-R @grossogroup.com, correct?
Niko Cacos: Correct. That is correct.
Gerardo Del Real: You've got the permits finally being worked through. You've launched field work. You've advanced the two priority targets. What comes next once you close this financing, Niko?
Niko Cacos: Well, we're going to continue with our drill program here. We're going to drill out these targets. We've got already... What we have here, for our listeners, is not just a deposit. We have an entire new district in southern Argentina that rivals some of the biggest districts in the world that's got potential to rank amongst the largest uranium districts with some of the lowest operating costs. And it's in the jurisdiction in Argentina, which is very favorable. It's in the western hemisphere, geopolitically. It's a great place to be acquiring uranium from, if you're looking to buy uranium. And what can I say? This is a fantastic opportunity.
Gerardo Del Real: No, I agree. I love uranium. I love what the group has done in Argentina. I love what Argentina has done for itself to emerge as a very, very stable mining jurisdiction. And look, the exploration upside is pretty exceptional here. Looking forward to seeing the response and looking forward to seeing the results from future exploration work on these targets. Niko, always a pleasure. Thank you so much.
Niko Cacos: Thank you, Gerardo.Click here to see more from Blue Sky Uranium