Uranium Energy to acquire Reno Creek ISR project in Canada
US-based Uranium Energy has entered a definitive share purchase agreement with Pacific Road Resources Funds to acquire all issued and outstanding shares of Reno Creek Holdings (RCH).
The agreement allows Uranium Energy to acquire 100% of Pacific Road’s fully permitted Reno Creek in-situ recovery (ISR) project in the Powder River Basin, Wyoming.
Uranium Energy president and CEO Amir Adnani said: "The acquisition of Reno Creek creates an industry-leading diversified pipeline of low-cost ISR uranium projects when combined with our production-ready South Texas hub-and-spoke operations and exploration/development portfolio in Paraguay.
“The Reno Creek project presents a rare opportunity to acquire a large, fully permitted, construction ready, and strategic low-cost ISR asset located in the United States, a complete set of attributes for any potential UEC acquisition.
“The Powder River Basin of Wyoming has produced over 85 million pounds U3O8 historically, and is currently home to two of the largest uranium producers in the world: Cameco and Uranium One (Rosatom). We commend Pacific Road for their outstanding work to advance the Reno Creek project over the past seven years, and we welcome them as our newest shareholder."
Pacific Road has 97.27% ownership in RCH, while the remaining 2.73% is held by Bayswater Uranium.
Under the agreement, Uranium Energy will acquire Pacific Road's 97.27% in RCH.
In exchange, 14 million shares of Uranium Energy will be issued to Pacific Road. In addition, a 0.5% net profits interest royalty capped at $2.5m will be offered.
Once the transaction is complete, Pacific Road will own 9% of UEC's outstanding shares.
The agreement also allows Uranium Energy an opportunity to acquire the remaining 2.73% of RCH from Bayswater Uranium.
Completion of the transaction is subject to US Nuclear Regulatory Commission approval, and scheduled by 31 July.
The Reno Creek ISR project is located about 80 miles north-east of Casper, with a source and byproduct materials licence held to construct and operate an ISR uranium facility.