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Nexgen Energy Ltd T.NXE

Alternate Symbol(s):  NXE

NexGen Energy Ltd. is a Canadian company focused on delivering clean energy fuel for the future. It is engaged in the acquisition, exploration and evaluation and development of uranium properties in Canada. It is focused on optimally developing the Rook I Project. It has a portfolio of highly prospective projects, including its 100% owned Rook I property that is host to the high-grade Arrow Deposit, South Arrow, Harpoon, Bow, and the Cannon area. The Rook I Project is a development-stage uranium project in Canada. The new underground mine and mill development is located in the uranium-rich district of the southwestern area of the Athabasca Basin, located in Saskatchewan. Arrow is a 100% land-based, basement-hosted, and high-grade uranium discovery. The Rook I Project, host of the Arrow Deposit, which is a development-stage uranium project in Canada and is 100% owned by NexGen Energy Ltd. The Rook I property hosts the Harpoon Discovery located 4.7 km northeast of the Arrow Deposit.


TSX:NXE - Post by User

Bullboard Posts
Comment by Malcolm2001on Mar 14, 2017 10:03pm
278 Views
Post# 25980014

RE:my thoughts

RE:my thoughtsSelling Harpoon to Rio Tinto is an interestin possibility. with deep pockets needs to build a mill so if Rio owns Harpoon it may be on the cards for them to build the mill and sell the processing capability to PurePoint Uranium Group and NexGen. That way the smaller companies don't need to raise a pile of cash to build a mill. Raising a billion or twi is easy for Rio Tnto.
Some food for thought...very much a possibility in my view. Certainly could explain the delay in publishing the results. Rio already has an interest in Harpoon...here is the blurb from NXE website:
"The Harpoon Discovery is located on a Rook I internal mineral disposition (northeast of green dashed line in Figure 1) which is subject to a 2% net smelter return royalty (the “NSR”) of which 1% can be repurchased by the Company for $1 million which is held by Advanced Royalty Corp. In addition, Harpoon is subject to a 10% production carried interest held by Rio Tinto Uranium Corporation (“Rio Tinto”) which provides Rio Tinto with a right to 10% of potential future production provided Rio Tinto pays NexGen their 10% pro rata portion of the collective expenditure from June 20, 2005."

It would be an attractive proposal for Rio to either buy it out or increase their interest in Harpoon. It also allows NXE to focus on developing Arrow which will be well over 500Mlbs in a few years when more drilling is done.
Malcolm

Bullboard Posts