UVRE and its East Canyon uranium and vanadium project in Utah have listed on the ASX after raising $6m through an oversubscribed initial public offering.
With a market capitalisation of $8.18m and enterprise value of $2.18m due to its tight capital structure, shareholders have greater exposure to any upside from any exploration successes.
And this could come sooner than you think. Permitting for an initial drill program of up to 50 holes at East Canyon, which will be funded by proceeds from the IPO, have already been received and planning for the first phase is currently underway.
UVRE (ASX:UVA) may also assess other value accretive and/or strategic acquisition opportunities, if such opportunities arise, with a focus on “new world minerals” that are pivotal in technologies and developments associated with the de-carbonisation and electrification of the global economy.
“We are very pleased by the strong response from both retail and institutional investors to the capital raising and the company’s strategy to explore and pursue critical minerals,” managing director Pete Woods said.
Lead manager JP Equities’ managing director Jason Skinner said the listing couldn’t have come at a better time for a US-based uranium play after US miners jumped amid reports of a US$4.3bn plan to support domestic producers and end US dependency on imports for almost a quarter of the enriched uranium used in its nuclear reactors.
“We are expecting strong tailwinds in the sector and a sustained increase in investment into U.S based Uranium plays. We believe UVRE presents as a highly leveraged play on the ASX for investors looking gain exposure to this trend that is playing out in the Uranium market,” he added.
The Beast of East Canyon
The East Canyon project is located in the Colorado Plateau just 50km from Energy Fuels’ White Messa Mill, the only conventional fully operational and licensed uranium/vanadium mill in the US.
While the company has no relationship or arrangement with Energy Fuels, White Messa has historically accepted third party ore.
The project comprises 231 contiguous claims covering 18.7km2 in the Dry Valley/East Canyon mining district.
The Uravan Mineral Belt and surrounding Salt Wash ore producing districts of the Colorado Plateau have historical production of more than 85 million pounds of uranium at an average grade of more than 0.13% U3O8 and more than 440 million pounds of vanadium at an average grade of 1.25% V2O5.
East Canyon has known historical workings, drill intercepts and production of both uranium and vanadium.
Many of these workings remain open, accessible and in good condition with visible high-grade uranium-vanadium mineralisation present.
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