UEX Corp T.UEX

RE:NEWS!! UEX - JCU

[invest4fun]

My initial reaction to this news was WTF!?!?!

Oh first!  I am eating my words, as I have been saying all along this was a DONE DEAL. :|

I'm still disappointed that this incredibly suweeet fairy tale deal was just that... a fairy tale.

Oh Roger :(  

Oh honourbale gentlemen of OURD  :(

But then the concept began to sink in and I am now able to swallow the "new deal" after a bit of chewing.

1. I own both UEX and DML, so I can't lose.  :)
2. UEX gets to manage the "New JCU" as long as they keep their 50% of the shares, whatever form these "shares" will take.
3. pursuant to #2, partnering with DML on Wheeler River is benficial in any form, especially in an amicable rather than acrimonious partnership as might have been the case otherwise... because DML is working on an ISR mining technique at Wheeler River.... a first for the Athbasca Basin and significant because, if it works out, it will increase the viability of mining deep uranium deposits in highly friable host rock, which includes Shea Creek and Christie Lake. Recall that CCO has had problems mining Cigar Lake "conventionally" due to these difficult conditions. How many floods have they suffered?
4. I am assuming that the $41 million purchase price will be staying within JCU as per the original Agreement. That is a decent exploration budget for which UEX only has to cough up $20.5 million of that through private placements later in the year, amounting to 41 million shares of dilution at $0.50 now or maybe 20 million shares at a buck??
5. DML would now have 17.3% of Christie Lake, with UEX being the operator of the JV. DML would have obligations through JCU to fund exploration out of thetopped up JCU kitty. This is GREAT news.
6. Through JCU, DML will be at the table with UEX on CCO's Millenium Project and Orano's Kiggavik Project. DML might give UEX a bit more credibility and clout at these Projects. And oh to be a fly on the wall at those meetings!

So in a nutshell, there is a lot of benefit to UEX in this new arrangement. DML?  not so much as they really only get another 5% of their Wheeler River deposit... 90%?  95%? 100%? really makes no difference to them. And DML would most likely have tried to squeeze UEX out of Wheeler with exorbitant financial obligations on the Project.

Let's see how Sprott and RedCloud value this....