Mike Fagan,
Editor
Nov. 7, 2024
Uranium Royalty Corp. (TSX: URC)(NASDAQ: UROY) — currently trading around C$3.90 per share — has acquired an existing royalty on industry-leader Cameco’s advanced-stage Millennium and Cree Extension uranium projects in Saskatchewan’s prolific Athabasca Basin.
URC/UROY acquired the multi-property royalty (10% NPI; 20% participating interest) from a third-party industrial gas company for total cash consideration of $6 million.
Uranium Royalty Corp. CEO Scott Melbye — whom you’re about to hear from directly in our exclusive interview coming right up — commented on the royalty acquisition via press release:
“We are very excited to acquire this significant royalty on the Millennium and Cree Extension Projects. Cameco has previously completed substantial development work on the Millennium project and it remains one of the largest undeveloped projects in Cameco's portfolio. It represents an important potential contributor to the future global production pipeline. The transaction is another example of our ability to leverage the URC team's experience and networks to source and execute accretive uranium royalty transactions.”
Cameco’s majority-owned Millennium project hosts an Indicated Mineral Resource of 75.9 million pounds U3O8 at an average grade of 2.39% U3O8 and an Inferred Resource of 29.0 Mlbs U3O8 at an average grade of 3.19% U3O8, placing it among the largest undeveloped uranium projects globally.
The Cree Extension property is an exploration-stage project located 36 km northwest of Cameco’s Key Lake Mill and is a joint venture among Cameco, Orano Canada Inc., and JCU. The land is located west of Denison’s Wheeler River project and southwest of Cameco’s McArthur River project.
For those new to the URC/UROY story, Uranium Royalty Corp. is the only pure-play uranium royalty company in the space and the first company to apply the successful royalty and streaming business model exclusively to the uranium sector.
The model has the distinct advantage of providing diversified exposure to uranium as a commodity — via royalties, streams, and physical inventory — without having to own, develop, or operate any uranium mining projects.
URC’s current portfolio includes royalty interests on 19 development, advanced permitted, and producing uranium projects in multiple jurisdictions around the globe, including royalties on Cameco’s world-class McArthur River and Cigar Lake mines in the Athabasca Basin.
Additionally, through opportunistic market purchases, a supply stream with CGN Global, and a strategic arrangement with London-listed Yellow Cake plc, URC holds interests in physical uranium acquired at or near cyclical lows.
At present, the company boasts a physical drummed uranium inventory of ~2.7 million pounds at an average cost basis of less than US$60 per pound U3O8. Uranium spot prices are currently right around US$78 per pound.
The company’s multi-faceted growth strategy has enabled it to build, call it, a warchest of over C$300M in cash, marketable securities, and physical inventories to which it can deploy to add to its existing portfolio of royalties and streams. URC’s current market cap sits just below C$465M.
With a robust and diversified portfolio, strong balance sheet, and top-notch management team with decades of combined uranium industry experience, Uranium Royalty Corp. is uniquely positioned to benefit from strong uranium pricing as the only pure-play uranium royalty company in the space.
As promised, our own Gerardo Del Real of Junior Resource Monthly caught up with Uranium Royalty Corp. CEO Scott Melbye for an in-depth discussion on the global uranium market, the newly-acquired multi-property royalty, and the globally-diversified growth plan underway heading into what looks to be a very fruitful 2025 in the uranium space. Please enjoy!
For additional information on Vancouver-based Uranium Royalty Corp., be sure to contact the company’s IR department toll-free at 855-396-8222.
Sign up to receive updates directly from the company at the Uranium Royalty corporate website and view the most recent Corporate Presentation here.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
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