Building a Uranium Royalty Juggernaut

by Mike Fagan

Mike Fagan


Uranium Royalty Corp. (TSX-V: URC)(NASDAQ: UROY) — currently trading around C$4.00 per share and the first-and-only pure play uranium royalty company in the space — has completed the acquisition of royalty interests on Cameco’s McArthur River and Cigar Lake uranium mines in Canada’s prolific Athabasca Basin.

The transaction provides the company and its shareholders with exposure to the two largest high-grade uranium mines on the planet with ore grades upward of 100X the global average. Combined, the mines have capacity equal to about one-fifth of global forecasted uranium demand. 

The deal also includes a royalty on the high-grade Dawn Lake Uranium Mine, which has been active since 1977 with resources of approximately 18 million lbs U3O8.

Uranium Royalty CEO, Scott Melbye, commented via press release

"These royalties enhance URC's exposure to potential near- and long-term cash flow from existing world-class operations. The additional option to acquire the Dawn Lake royalty interest as part of this acquisition provides additional exposure to this early stage project. We believe these exploration lands are in a prime geological setting with proven prospectivity, all within trucking distance of two existing mills. This transaction provides URC with over 300,000 hectares of royalty exposure in the world-class Athabasca Basin. URC also values its increased exposure to projects owned and operated by industry leaders, Cameco and Orano."

Also in the Athabasca, Uranium Royalty owns a 1.97% net smelter royalty on Rio Tinto’s development-stage Roughrider Uranium Project. 

There’s a lot to like with Uranium Royalty Corporation. In addition to the high-profile royalty acquisitions, the company recently uplisted to the NASDAQ, announced a C$25 million bought deal financing, and has begun taking delivery of physical uranium from London-based Yellow Cake PLC. 

At the closing of the aforementioned financing, the company will have around C$70 million in cash and listed securities, which is almost unheard of in the junior space. 

For speculators, Uranium Royalty is the first company to apply the successful royalty and streaming business model exclusively to the uranium sector — and by all accounts, I think it’s safe to say they’re off to a highly impressive start. 

With uranium back above US$30 per pound and likely heading significantly higher in the coming months and years, now is a good time to be taking a closer look at Uranium Royalty Corporation as the company continues to build its balance sheet and its portfolio of uranium royalties in Tier-1 jurisdictions. 

Our brand new report on Uranium Royalty Corporation is available here.

Yours in profits,

Mike Fagan

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 and Hard Asset Digest readers.

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