Categories: General Market Commentary
Topics: General Market Commentary

Azarga Uranium Approaches the End of Permitting

Oct. 22, 2020

BY: NICK HODGE

While uranium remains largely out of favor as a resource flavor, I’ve long said Azarga Uranium (TSX: AZZ)(OTC: AZZUF) is worth owning because of the superlatives of the asset. 

I have personally financed it at C$0.07 and C$0.225 as far back as 2017. I’ve also exercised warrants at C$0.20. Those who follow me into private placements at Family Office Manager had the chance to do the same. 

Back in August, Azarga announced some very important but overlooked news: it had secured the capital necessary to secure the assurance bonds for the Class III and Class V underground injection control permits at the Dewey Burdock project.

The full permit is now imminent. 

Dewey Burdock is the best undeveloped in-situ uranium project in the United States with an after-tax internal rate of return (IRR) of 50% and net present value (NPV) of US$147.5 million at US$55 uranium.

Sometimes it’s good to hear it from someone other than me. Check out what Peter Epstein at Epstein Research had to say about Azarga this week, including:

Once Azarga Uranium clears the final hurdle, a number of investment catalysts will present themselves. Preliminary discussions on off-take agreements with utilities would be launched. Lining up debt funding for construction would be aggressively pursued. More earnest talks with prospective strategic / financial partners would take place.

All eyes are on Azarga Uranium (TSX: AZZ)(OTCQB: AZZUF) and the uranium price in coming months. Will investor’s patience finally be rewarded?

There aren't many quality names in uranium space. Azarga boasts a premium asset in a premum jurisdiction that is approaching a significant permitting milestone. 

These are the kinds of comanies I look to finance in my Family Office Manager. 

Call it like you see it, 

Nick Hodge
Founder, Hodge Family Office