UEX Corp UEXCF

my 2 cents worth #2

[invest4fun]

A BUYOUT

I am actually glad that this deal has been announced and that it is one of the first M&A news stories of this cycle. I knew UEX had to be bought out at some point. Any junior in this space finds itself limping along with PP's diluting the share value just to carry on. Someone with deep pockets needs to ramp up exploration. UEX has had its hands tied at Shea Creek JV for far too long. Maybe UEC will pump some money into drilling there. Every UEX (UEC) dollar that is spent there dilutes Orano's share of the JV unles they match it. And although I don't have a balance sheet of the expenditures to date, it won't take a huge amount of expeditures to tip the balance (49.1% UEX 50.9% Orano) in UEX's favour. Will see if Orano truely values the project or if UEC can finesse control of the JV away from Orano.

And I don't think this is the only offer we will see for UEX. I simply cannnot believe that DML will sit by and let this get away. I'm sure they see UEC as a threat in the Basin. Maybe even COO will sniff around... afterall, it places their entire brownfields territory in the Eastern Basin in control of a company that may have deep pockets. ....more on this in my next post.