Uranium week: the investment vehicle concludes its fundraising


Weekly reports | June 02, 2021

As uranium spot price continues its four-week winning streak, Uranium Participation Corp completes fundraiser to fund future uranium purchases

-Uranium Participation Corp raises C $ 80 million
-Exelon calls for a stay of nuclear power plant
-The spot price of uranium increases by 0.8% for the week and by 10% for the month of May

By Mark Woodruff

Good sign of interest in uranium industry, Canadian society Uranium Holding Company closed its fundraising with proceeds of approximately C $ 80.5 million / US $ 66.8 million. The initial raise announced on May 3 was C $ 50 million and was increased the next day to C $ 70 million.

The company invests almost all of its assets in uranium, in the form of uranium oxide or uranium hexafluoride, with the main objective of capital appreciation. Accordingly, the net proceeds of the offering will be used by the Company to fund such future purchases as well as an allocation for general corporate purposes. After deducting costs, this should give the company enough money to purchase around 2ml of U3O8 at current prices.

For more details on the history of recent significant developments for Uranium Participation Corp, please refer to last month’s article: https://www.fnarena.com/index.php/2021/05/04/uranium- week-new-uranium-investment -vehicle /

Legislative news

U.S. news reports over the long weekend suggested a stalemate in negotiations between the negotiating parties over the threat to shut down nuclear power plants in Illinois.

The CEO of America’s largest energy supplier, Exelon Corp, said earlier last month that the company would shut down nuclear power plants in Byron and Dresden later this year if the state of Illinois did not adopt. no political reforms to support their continued exploitation before the end of the current session.

The Climate Union Jobs Act (CUJA) is one of several clean energy bills currently under consideration by the Illinois General Assembly. Along with other initiatives, it would create 74 million megawatt hours of carbon mitigation credits for facilities such as Exelon’s nuclear power plants at Braidwood, LaSalle, Bryon and Dresden.

Byron’s two pressurized water reactors are allowed to operate for an additional 20 years but would shut down in December, while Dresden’s two boiling water reactors would shut down in November with a decade left of their operating license.

Meanwhile, there was a federal-level proposal by US senators last week to introduce a production tax credit for existing nuclear facilities. This energy tax reform bill is backed by the Biden administration, in an effort to reduce carbon emissions.

Company News

Last week listed on ASX Peninsula energy ((PEN)) agreed to purchase 300,000 pounds of uranium at a price of US $ 31.35 / pound. This will be entirely financed by a placement of shares at 15 cents.

The company is currently focused on transitioning the Lance Uranium project in the US state of Wyoming to low pH in situ recovery from an alkaline operation. The company recently provided an update on low pH demonstration work and expects it to be completed by the first half of fiscal 22. Shaw and Partners stock brokers anticipate the start of a revised feasibility study in the first half of 2022, incorporating the field demonstration test.

Settlement is due in June 2021 and the uranium will be stored at Cameco’s facility located in Ontario, Canada.

The company noted, “The addition of physical uranium to our balance sheet offers significant flexibilities and upside potential as we move towards restarting operations. It is important to note that holding uncommitted uranium stocks at a time when the U.S. government is exerting strong and continuing pressure to support nuclear power generation and domestic production of critical minerals like uranium, improves our ability to successfully participate in expanding market opportunities, ”said Executive Director and CEO Wayne Heil.

This week, listed on ASX DevEx Resources ((DEV)) has received firm commitments to raise just under $ 8 million through a placement. The funds are to be applied to expanded exploration work on its WA, NSW and Northern Territory projects.

The company announced the use of part of the funds for the resumption of field exploration of the Nabarlek uranium and gold-copper project.

Investors were offered shares at 32 cents. The company now has a total cash balance of approximately $ 17.6 million.

Also this week, listed on ASX Vimy Resources ((VMY)) announced the completion of the acquisition of the Alligator River project from Cameco Australia. The company is also close to finalizing the acquisition of Rio Tinto Exploration’s 21% stake in the King-River-Wellington Range joint venture, which is part of the Alligator River project. Upon completion, Vimy Resources will own 100% of the project.

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