Oct. 29, 2021
Consolidated Uranium Inc. (TSX-V: CUR)(OTC: CURUF) — trading firmly above C$2.75 per share in a rising uranium market — has announced the closing of its previously-announced acquisition of a portfolio of conventional uranium mine projects located in Utah and Colorado from Energy Fuels Inc. (TSX: EFR)(NYSE-Amer: UUUU).
The acquisition — which includes the permitted and past-producing Tony M, Daneros, and Rim mines, Utah — establishes CUR as a new player in the US uranium sector:
Tony M Mine: Located in the Henry Mountains area of southeastern Utah, the project is a large-scale, fully developed and permitted underground mine that operated most recently in 2008.
Daneros Mine: Located in the White Canyon district, the project is a fully developed and permitted underground mine that was most recently in production in 2013.
Rim Mine: Located in the East Canyon portion of the Uravan mineral belt, the project is a fully developed and permitted underground mine that was most recently in production in 2009.
These three past-producers will be the immediate focus for CUR. Ore will be processed at Energy Fuels’ White Mesa Mill, Utah — the only conventional uranium mill operating in the United States today.
Consolidated Uranium CEO, Philip Williams — whom you’ll be hearing more from in a moment — commented via press release:
“This is a seminal moment for Consolidated Uranium. With the closing of this acquisition and entering into of the toll-milling and operating agreements, CUR is firmly established as a U.S. uranium player with near term production potential from a portfolio of past producing mines with a clear pathway to production from guaranteed access to the White Mesa Mill. We have been very busy in the background putting plans in place to accelerate development of these projects and look forward to updating the market on that plan in due course. Finally, on behalf of myself and the rest of the directors of CUR, I would formally like to welcome Mark to the Board and look forward to working closely together as we advance this exciting portfolio of projects.”
The alliance will result in Energy Fuels holding 19.9% of CUR shares and brings with it the appointment of Energy Fuels president & CEO, Mark Chalmers, to the CUR board.
That addition will undoubtedly strengthen CUR’s board as Mark is a respected mining engineer and recognized leader in the global uranium sector and brings with him decades of experience in uranium project development and mining.
Mr. Mark Chalmers, added:
“We are pleased to partner with Consolidated Uranium in unlocking the value of these significant U.S. uranium assets … We look forward to working with Phil and his team to advance these projects in the near term, while also providing our shareholders with an opportunity to enjoy significant exposure to the future share price performance of CUR.”
Additionally, earlier this month, CUR updated the market on its planned spinout of Labrador Uranium Inc. (“LUR”), currently a majority-controlled subsidiary of CUR focused on the consolidation, exploration, and development of uranium projects in Labrador, Canada.
As part of the transaction, Labrador Uranium will be raising up to C$8 million via private placement with Red Cloud Securities acting as lead agent.
In alignment with the proposed spinout, CUR has provided notice to exercise its option pursuant to the previously announced agreement to acquire 100% of the Moran Lake uranium-vanadium project, which it will then transfer to LUR in exchange for 16 million LUR shares.
CUR and LUR have also entered into a purchase agreement with Altius Resources Inc., pursuant to which LUR has agreed to acquire, from Altius, a 100% interest in the Central Mineral Belt uranium-copper project and the Notakwanon uranium project — both located in Labrador.
Formed in early-2020 to capitalize on what management astutely recognized as a uranium market ripe for resurgence, CUR is now reaping the benefits of what looks to be a long-term uptrend in uranium with U3O8 prices surging toward US$50 a pound for the first time in nearly a decade.
Consolidated Uranium is well-positioned for growth by way of its robust suite of uranium exploration and development projects in the US, Australia, Canada, and Argentina.
Speculators can expect steady news flow out of the CUR camp over the next several quarters in what looks to be a uranium bull with legs!
All of that and much more is covered in Gerardo’s exclusive sit-down with Consolidated Uranium CEO, Philip Williams.
To top it off, Gerardo has a brand new uranium recommendation out to his Junior Resource Monthly subscribers. Click here for a brief video introduction by Nick Hodge on this undiscovered uranium gem that’s poised to help lead America’s uranium production resurgence back to its glory days.
Check out additional Consolidated Uranium news, interviews, and much more.
You can also read our feature report on Consolidated Uranium.
Yours in profits,
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Editor, Resource Stock Digest