DealRoom: High-grade Uranium Opportunity, Full Warrant

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Resource analysts have been calling for a strong rebound in the uranium sector for several years. It hasn’t happened – yet. However, new nuclear reactors continue to come online. More importantly, there has been a dramatic upsurge in the number of reactor projects added to the drawing board or under construction.

A July 2018 article from World Nuclear lays out the numbers. Fifty new reactors are currently under construction. Approximately 150 reactors (with a gross capacity of 160,000 MWe) are on order or planned, and an additional 300 reactors are proposed. Putting this into context, there are currently roughly 450 reactors in operation worldwide.

Meanwhile, the supply of uranium has been shrinking. Put these dynamics together, and the question is not “will there be a rebound in uranium?” The question is only “when?”

Enter the Stockhouse DealRoom. The newest private placement to be featured here is for Standard Uranium Corp. Visit the Company’s website and the headline is simple: World’s Highest Grade Uranium District – Canada’s Athabasca Basin.

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Standard Uranium is currently a private corporation. It is in the process of going public via the RTO route (reverse take-over), and once completed, will trade on the Venture Exchange under the symbol “STND”. Part of this process is the “qualifying transaction”: raising a specified sum of capital to ensure the new publicly-listed company is properly capitalized.

This makes the current offering on the DealRoom the opportunity to get in on the ground floor with this early-stage uranium exploration play. The terms of the deal are enticing.

Standard Uranium is seeking to raise up to $5 million, with Units priced at $0.25. Each Unit is comprised of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share, at an exercise price of $0.40. Warrants remain valid for a period of 12 months from the date of closing.

A ground-floor opportunity in a resource sector well overdue for a return to bull market conditions. A private placement to facilitate accumulating a large position on very economical terms. Favorable supply/demand fundamentals in the sector. The Big Picture is very encouraging.

More specifically, the Company’s flagship property is its Davidson River land package, which is interpreted to be along trend from the Patterson Lake Corridor that hosts high-grade uranium discoveries, including the “Triple R” and “Arrow” Deposits. Located in the Southwest Athabasca Uranium District, STND is already the third-largest landholder here. While the property hasn’t been tested by previous drilling, neighbouring operators (Fission Uranium, NexGen Energy) have already defined high-grade uranium deposits, completing more than 1,000 drill holes.

Standard Uranium has conducted VTEM geophysical work at Davidson, with promising results. Upon completion of the RTO, funds from the financing will be immediately dedicated to discovery-driven exploration work on the property. STND’s exploration team is lead by Neil McCallum, VP Exploration who is intimately familiar with the region and has a track record of success in the Athabasca Basin. He is backed by Garrett Ainsworth, Director, who is responsible for two of the three uranium deposit discoveries along the Patterson Lake Corridor.

STND is confident it already has the people and the property. With the financing it will have the third essential ingredient for success in the mining sector.

Resource sectors are well-known for being cyclical. In this respect, the uranium sector tends to experience particularly strong peaks and troughs. Resource investors know that to capture the maximum profit potential from any metal/mineral opportunity, the time to position themselves is ahead of the upturn.

Standard Uranium is providing a ground-floor opportunity to profit from the next uranium bull market – in the world’s highest-grade uranium district.

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FULL DISCLOSURE: Standard Uranium Corp. is a paid client of Stockhouse Publishing.