Landmark Acquisition Makes UEC America’s Largest Uranium Mining Company

Uranium Energy Corp. (NYSE: UEC) — currently trading firmly above US$5.00 per share in a rising uranium market — has entered into a definitive agreement with Uranium One to acquire all of the issued and outstanding shares of Uranium One Americas.

Uranium One is the world's fourth-largest uranium producer and is part of Russia’s State Atomic Energy Corporation, Rosatom. Upon the closing of the Uranium One Americas acquisition, UEC will be elevated to America’s largest uranium mining company.

The acquisition — which includes, among other assets, seven projects in the Powder River Basin, three of which are fully permitted, and five in the Great Divide Basin, Wyoming — is fully funded with UEC’s existing balance sheet, which, as of October 26, 2021, had over US$235 million of cash and market value liquid assets.

Uranium Energy CEO, Amir Adnani — whom you’re about to hear from directly — commented via press release:

“We are very pleased that after a comprehensive and competitive bidding process, Uranium One elected to work with UEC to undertake the successful sale of their substantial uranium assets in the United States.  This is a highly accretive transaction for UEC and represents great value to our shareholders. The purchase price is equal to only 12% of our current enterprise value, yet the acquisition doubles the size of our production capacity in three key categories: total number of permitted U.S. ISR projects, resources, and processing infrastructure.  The opportunity to acquire an advanced asset base of this quality from one of the global leaders in the nuclear energy sector is highly rare in the uranium sector anywhere in the world, let alone in our own home jurisdiction of the United States. Additionally, we expect significant savings related to the development of our nearby Reno Creek ISR Project.  We also anticipate long-lasting operational synergies and cost efficiencies in our newly formed Wyoming hub-and-spoke operations. The U1A Irigaray Central Processing Plant will be able to process our fully licensed Reno Creek ISR project, in addition to the fully permitted Moore Ranch, Ludeman and Christensen Ranch projects in the U1A portfolio purchased in this transaction. The assets in this transaction are some of the lowest cost U.S. projects along with fast restart capabilities in the most productive region of the western hemisphere for in-situ recovery of uranium, Wyoming's Powder River basin.  With this Acquisition, our U.S. ISR production profile increases to 6.5 million pounds U3O8 per year based on licensed and installed capacity of our Wyoming and South Texas hub-and-spoke operations. Combined with our physical uranium holdings of 4.1 million pounds of U.S. warehoused uranium, we now have the unparalleled ability to provide reliable domestic supply to the U.S. Uranium Reserve as well as re-emerging demand from American and global nuclear utilities.” 

The timing of the acquisition, really, could not be better for UEC with U3O8 prices in a significant uptrend since April as nuclear’s status as the only baseload source of clean, affordable, reliable electricity continues to elevate.

Our own Gerardo Del Real of Junior Resource Monthly caught up with Uranium Energy CEO Amir Adnani for a detailed look at the landmark acquisition as well as an expert review of the emerging uranium bull market through the eyes of someone who’s been through multiple cycles. Please enjoy this exclusive talk!

Be sure to bookmark Resource Stock Digest's page dedicated to Uranium Energy news, interviews, and much more.

For interested speculators, don't miss our feature report on Uranium Energy Corp.

Speaking of uranium... Gerardo has a brand new uranium pick out to his subscribers.

Our publisher Nick Hodge has released a video presentation on this undiscovered gem that’s poised to help lead America’s uranium production resurgence back to its glory days.

This presentation is a must-see for any speculators interested in the uranium bull that’s now in play.

Yours in profits,

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Mike Fagan
Editor, Resource Stock Digest

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