Canadian Mineral Exploration Company, Urano Energy, is Buying 12.7 Square Miles of Prospective Uranium Properties in Utah and Colorado in a Planned $10.6 Million Cash and Stock Purchase
Urano Energy (OTCQB:UECXF), a Vancouver, British Columbia mineral exploration company, has entered into a purchase agreement to buy 12.7 square miles of prospective uranium-holding mining properties in Utah and Colorado for $10.6 million in cash and stock.
According to the company news release, the Urano agreement with "... two Utah-based arm's length private companies ..." will see Urano pay the firms
- $5.825 million(US) in cash, and
- $4.8 million in Urano shares,
in payments made over a five-year period.
As outlined in the company news release, nearly 70% of the 12.7 square miles of purchased properties (8.83 square miles) are based in Utah, primarily in San Juan County, with one property based near Green River, Utah in Emery County.
According to Urano,
"The region's rich history of uranium mining has established Utah and Colorado as long-standing and significant players in the global nuclear energy sector."
According to Wikipedia, between 1949 to 2019, U.S. production of uranium oxide, U3O8 (aka, yellowcake — the primary source for usable uranium after processing) was just shy of 980 million pounds of yellowcake.
On an annualized basis, that works out to ~16.3 million pounds of yellowcake production during that 60-year-period.
In reality, however, U.S. production has dropped precipitously of late, with less than 225,000 pounds of yellowcake extracted in the U.S. in 2023, a mere fraction of the annual consumption needs of the U.S.
This is especially true of late as several major technology companies are exploring opportunities to purchase existing or potentially build nuclear power plants as a way to meet the accelerating energy needs of their datacenters, especially those designed to meet the growing artificial intelligence requirements, both in-house and by their clients.
That's why Emy Lesofski, director of the Utah Office of Energy Development, sees this move by Urano (and other energy industry players), to be critical for the future of Utah on a go-forward basis.
"Critical minerals are essential in the development of clean energy resources," Lesofski said. "Urano Energy's recent acquisitions underscore our state's role as an energy leader. We're seeing a resurgence of interest in nuclear power nationally and globally because it's clean, reliable, and extremely energy-dense. If we source the materials needed for clean, reliable energy resources like nuclear power domestically, we'll also ensure our energy security and sustainability while supporting our local economies."
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