Top Reasons to Get Bullish on Uranium Heading into the New Year

November 17, 2022 - Baystreet.ca


Uranium prices could race to higher highs. For one, there’s a good deal of global demand, with about 55 new reactors being constructed in 15 countries, including China, India, and Russia, according to World-Nuclear.org. “About 90 power reactors with a total gross capacity of about 90,000 MWe are on order or planned, and over 300 more are proposed. Most reactors currently planned are in Asia, with fast-growing economies and rapidly-rising electricity demand.” All of which could be beneficial for uranium companies, such as Anfield Energy Inc. (TSXV: AEC) (OTCQB: ANLDF), Uranium Energy Corp. (NYSE: UEC), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), Cameco Corp. (NYSE: CCJ) (TSX: CCO), and Denison Mines Corp. (NYSE: DNN) (TSX: DML). In addition, global leaders are attempting to cut back on harmful emissions, which could increase dependency on uranium. In fact, according to Jon Bey, President and CEO of Standard Uranium, as quoted by Kitco.com, "We are starting to see countries around the world accepting nuclear energy. Those countries realize if they want to reach a carbon neutral future, nuclear energy has to be part of the equation.”

Look at Anfield Energy Inc. (TSXV: AEC) (OTCQB: ANLDF), For Example

Anfield Energy Inc. announced that it has entered into a royalty purchase agreement, dated November 17, 2022, with Uranium Royalty (USA) Corp., a wholly-owned subsidiary of Uranium Royalty Corp., in which Anfield has agreed to sell its uranium royalty portfolio to URC in consideration of a one-time cash payment of US$1,500,000. The portfolio consists of four royalties related to the Energy Queen and Whirlwind projects held by Energy Fuels, Inc., the Dewey Burdock project held by enCore Energy and the San Rafael project held by Western Uranium and Vanadium. The divestiture fits Anfield’s strategy with regard to the primary pursuit of uranium and vanadium production through its wholly-owned conventional mine-and-mill complex.

Corey Dias, Anfield CEO, stated, “We are pleased to have reached an agreement with URC regarding the sale of our royalty portfolio as our focus remains on leveraging our wholly-owned assets to meet our goal of uranium and vanadium production. Anfield continues to advance its assets to near-term production while it seeks further opportunities to increase its longer-term uranium and vanadium asset production pipeline in order to extend the life of its conventional mine-and-mill complex. This non-dilutive cash inflow provides the Company with additional funds to be used to facilitate both parts of our strategy.”

Completion of the transaction with URC remains subject to the approval of the TSX Venture Exchange, and the satisfaction of customary closing conditions. No finders’ fee or commission is payable by the Company in connection with the transaction. Uranium Energy Corp. is an insider of both the Company, and URC, as a holder of more than 10% of the outstanding share capital of both companies. As a result, the Company and URC are considered to be “non-arms’ length parties” under the policies of the TSX Venture Exchange. The transaction is not considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

Other related developments from around the markets include:

Uranium Energy Corp. announced that it has completed its previously announced acquisition of the Roughrider uranium development project located in the Athabasca Basin in Saskatchewan, Canada from a subsidiary of Rio Tinto plc. Amir Adnani, President and CEO of UEC, stated: “We are pleased to welcome Rio Tinto as a new shareholder and value their vote of confidence in choosing to complete this transaction with UEC. With the acquisitions of Uranium One Americas, UEX and now Rio Tinto’s Roughrider project, we have created an unrivalled, pure play uranium company. Our two-pronged approach combines best in-class 1) U.S. ISR production, and 2) Canadian high-grade conventional pipeline. We see unprecedented growth taking place in nuclear energy and growing demand for uranium, driven by net-zero goals and global decarbonization initiatives. With this backdrop, UEC offers un-encumbered and un-hedged exposure for investors and is positioned as a reliable supplier of uranium to western utilities with the largest diversified North American focused projects and resources.”

Energy Fuels Inc., a leading U.S. producer of uranium and rare earth elements announced that it has entered into a definitive agreement to sell three wholly-owned subsidiaries that together hold Energy Fuels' Alta Mesa ISR Project to enCore Energy for total consideration of $120 million. The Transaction is expected to close by the end of 2022 or early 2023. The Transaction is significant for the Company, as the cash received is expected to fully finance much of the Company's uranium, REE, vanadium and medical isotope business plans for the next two to three years without diluting shareholders. These plans may include: Ramping-up uranium production at one or more of the White Mesa Mill, the Nichols Ranch ISR Project, the Pinyon Plain mine, the La Sal Complex, and/or the Whirlwind mine which total up to two (2) million pounds of U3O8 per year of near-term, lower cost U.S. production capacity in order to fulfill commitments under existing and future long-term uranium supply agreements and as market conditions may warrant; Accelerating the licensing and development of the Company's larger-scale uranium mines, including the Sheep Mountain, Roca Honda, and/or Bullfrog projects, which together will add over five (5) million pounds of production capacity in the next several years; Establishing an "ore purchasing" program to secure additional feed to the White Mesa Mill, from others in the region as uranium mining picks up in the region, thereby maximizing the facility's existing eight (8) million pounds per year licensed uranium production capacity and having sole ownership of this production.

Cameco Corp. announced that the first pounds of uranium ore from the McArthur River mine have now been milled and packaged at the Key Lake mill, marking the achievement of initial production as these facilities transition back into normal operations. "McArthur River and Key Lake are among the best and most prolific uranium assets on the planet, and after building homes for these pounds in our long-term contract portfolio, we are delighted to have them back in production," said Cameco president and CEO Tim Gitzel. "Market conditions have continued to strengthen since we announced their planned restart, with growing geopolitical uncertainty adding to energy security concerns worldwide, and the ongoing global emphasis on decarbonization and electrification only gaining momentum."

Denison Mines Corp.’s David Cates, President and CEO of Denison commented, "It is an incredibly exciting time to be a Denison shareholder. Our company is delivering on our plans to systematically advance the development of Canada's first In-Situ Recovery ('ISR') uranium mine – having recently completed significant de-risking and regulatory milestones. This is occurring at the same time as interest in nuclear energy projects continues to increase as a result of the growing realization that nuclear power must play a critical role in our global battle against climate change. During the third quarter, Denison was successful in obtaining regulatory approvals to construct and operate the Phoenix ISR Feasibility Field Test ('FFT') facility and completed the construction and commissioning of the lixiviant injection modules necessary to launch the leaching phase of the FFT. Shortly thereafter, in October, the Company announced the history-making recovery of uranium bearing solution from the FFT following the successful acidification of the ISR test pattern. This result reflects the tireless effort of our Saskatoon-based technical team to de-risk and validate the 2018 selection of the ISR mining method for the Phoenix uranium deposit. We have now demonstrated that Athabasca Basin uranium can be recovered by the ISR mining method.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Anfield Energy Inc. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Anfield Energy Inc. Please click here for disclaimer.

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