F3 - Globe & Mail News FUU News
Globe says new coverage rates F3 Uranium "buy"
The Globe and Mail reports in its Friday, June 21, edition that Eight Capital analyst Puneet Singh commenced coverage on F3 Uranium with a "buy" recommendation. The Globe's David Leeder writes that Mr. Singh says the company's potential to define multiple zones at its Patterson Lake North project in the Athabasca basin could lead to a takeout offer. Mr. Singh targets the shares at 70 cents, which is seven cents ahead of the consensus. Mr. Singh says in a note: "The stock has been range-bound since its initial discovery. For the stock to break out again we believe F3 needs to prove out the project beyond the JR zone, and if it does so, then this may also be the takeout trigger for the company. The Athabasca basin has shown time and again, that if an additional pod or shear zone of mineralization is found, then there is further likelihood that multiple zones of uranium beyond this exist. Nexgen's Arrow, for example, is comprised of sub-parallel shear zones that were discovered over time after one another. F3's catalysts for the rest of the year include radioactivity and assay results from the Al and B1 areas. Key investment risks include commodity price (uranium), exploration risk and key management/personnel risk."