NewsFrom the current Swiss Resource Capital Newsletter:
Uranium Energy acquires Reno Creek and expands its resource base by 70%!
We already announced it via special newsletter this week: Uranium Energy (NYSE: UEC) acquires Reno Creek Holdings Inc. and thereby 100% of the fully-licensed Reno Creek ISR uranium project in Wyoming!
Once more the facts:
- A Source and By Product Materials License for Reno Creek was issued in February 2017 from the U.S Nuclear Regulatory Commission, supported by a Final Environmental Impact Statement and Record of Decision. This will allow Uranium Energy to construct ISR well-fields and a central plant immediately and the production of up to 2 million lbs. U3O8 per year.
- Reno Creek hosts a huge NI 43-101 Measured and Indicated resource of 27.47 million tons grading 0.041% U3O8 yielding 21.98 million pounds U3O8 plus an Inferred resource of additional 930,000 lbs.
- A Pre-Feasibility Study on Reno Creek completed in 2014 demonstrated strong project economics with low capital and operating costs consistent with ISR projects in Wyoming.
- Uranium Energy has to transfer only 14.0 million shares of the Company (worth about US$17 million) to Reno Creek’s major shareholder, the Pacific Road Resources Funds for its 97.27% ownership plus 11 million warrants and a 0.5% net profits interest royalty, capped at US$2.5 million. The warrants have a relatively high exercise price of 2.30 US$.
Therewith, Uranium Energy will expand its resource base by approximately 70%! Altogether for less than US$20 under the aspect, that all former project owners made cumulative expenditures to date of approximately US$60 million!
In addition to that, Uranium Energy seems to be included into the Russell 2000 on May, the 12
th 2017. This will significantly increase the institutional ownership and millions of shares would be traded, as many funds, ETFs and institutions are based on the Russell 2000 Index and have to buy. In addition to that, we should see a downsizing in short positions, which stood at about 10 million recently.
All this was also recognized by leading analysts like Marin Katusa, who has a target price for the stock in 60 days in the USD$1.75 to US$2.00 per share range.
One step further are the analysts from Eight Capital, which see a 12-month-course-aim of US$3.00. Heiko Ihle from Rodman & Renshaw has a further course aim of US$4.20!
Source: https://www.resource-capital.ch/en/infothek/newsletter-archiv.html