Welcome to The Market Herald Canada’s Capital Compass.
Many companies are considering a new path to clean energy in the fight against climate change. Our next company is publicly traded on the venture exchange and is utilizing uranium in this pursuit.
With headquarters in Vancouver, SKRR Exploration Inc. (TSXV:SKRR). And today we are lucky enough to speak with President and Director Sherman Dahl, who is here to talk with us about the company’s recent projects.
TMH: The uranium market has seen a significant spike over the past few years. So why do you think this market is growing so quickly?
Dahl: Well, I think it can all be summed up in three words. One, really it’s the world energy crisis. You know, we’re seeing this globally. I mean, most recently in The New York Times there’s articles, Reuters has articles, Bloomberg has articles, you know Forbes, CNN … and really going around countries all over the globe.
Even one of the headlines was that we’re facing an energy crisis and the Germans warily give nuclear a second look. We’re seeing the revival of nuclear power in Asia. Europe’s energy crisis isn’t going to be over anytime soon. So, I think the world energy crisis is really the main thing that’s driving the renewed interest in uranium.
TMH: And then with climate change being obviously top of mind, can you walk us through the potential role that uranium has in creating clean energy?
Dahl: Well, I think we’re talking about some global overall trends when it comes to pinpointing the increased demand for uranium. But clearly it’s all about efficiency. If we’re going to see true green energy in this world, uranium has to be part of the mix. It is one of the most efficient sources.
And in addition to being one of the most efficient sources, there’s going to be a significant deficit. I think the numbers are as much as 60 million pounds per year. But I think when it really comes down to is uranium is the solution for the green energy solution.
TMH: I was reading back over some of the company’s press releases, and I know SKRR entered into an option agreement with F3 Uranium, which was to acquire 70 per cent interest in the Clearwater West property, which I believe is in Saskatchewan. So, can you provide some details around the deal and the work that’s being done?
Dahl: Sure. I mean, we’re very fortunate, SKRR, to have struck up this option agreement with F3 Uranium. F3 has been building value in the Canadian markets since 1996. I mean, you have to go back to the original Fission Uranium which has had sort of a number of spinouts, including the Canadian assets that are now in F3.
Prior to that there was also Strathmore, which was a tremendous success story in the U.S. Fission Uranium, which is now FCU, the symbol for the main Fission, which of course has the Triple R deposit. But even prior to that, Fission Uranium was bought out by Denison. So, the amount of value that’s been created by the team that exists at F3 being led on the exploration side by Ray Ashley is it’s just world class.
So, it was really as simple as that. We wanted to go out into the uranium market, but do it with a world-class discovery team. And that’s what led to this option agreement. So, we have the option to earn 70 per cent of the Clearwater West project in the Athabasca Basin.
We’re very excited about this. And really it comes to one word and it’s discovery. And I think that’s what investors are really looking for, is the upside of a potential uranium discovery.
Over the last year we can see the stunning returns. You know, F3’s gone from 10 cents to 40 cents, you know, the main Fission got as low as 10 cents, and now it’s trading for 80 cents. Strathmore was down at 10 cents. It’s trading for 75 cents. So there’s these nuclear type rates of return that are available. And so, we wanted to tie into an option agreement with one of the world’s best explorers, which is F3.
TMH: And Sherman, you did mention the Athabasca Basin region. So more broadly, why is it so valuable for exploration work, or at least for your company?
Dahl: Well, I mean, again, if we can look at sort of the macro, the overall numbers. There’s 60 years of mining with the world’s highest uranium grades in the Athabasca Basin. It’s actually stunning, just over 13 per cent of all the world uranium comes out of the Athabasca Basin in Saskatchewan.
And then of course, Saskatchewan’s the No. 2 jurisdiction worldwide as rated by the Fraser Institute. And if you actually look at a chart, if we compare the grades in Canada, i.e., the Athabasca Basin to other countries like Niger, Australia, Namibia, Kazakhstan, they’re not even close. Like we’re talking 0.4 per cent versus 2 per cent. So, jurisdiction and grade are the two really big things behind the Athabasca Basin.
TMH: And lastly, what makes SKRR a good investment for those who maybe want to add a uranium exploration company to their portfolio?
Dahl: Well, I think what investors are looking for is a rate of return. And I think investors are looking for exploration assets that have that kind of significant upside.
SKRR is very well structured. There’s only 15 million shares outstanding. We have a very low market cap. If there’s a discovery at Clearwater West, and again, we’re going in with one of the best discovery teams in the world, all the upside is going to go to the shareholders.
You know, we do not have a lot of shares outstanding. So, this is really, SKRR is the discovery story in a world-class district looking for uranium.
You can follow SKRR Exploration Inc. on the TSXV under the symbol SKRR or you can also head to its website skrr.ca for more information.
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