Merger to create US in-situ leach uranium company
08 May 2018
Azarga Uranium Corp and URZ Energy Corp have announced they are to merge to form a new US-focused in-situ leach (ISL) uranium development company. The merger will allow the companies, which are both based in Vancouver, Canada, to consolidate their US uranium assets which together include measured and indicated resources of 30.7 million pounds U3O8 (11,809 tU) plus additional inferred resources of 8.7 million pounds U3O8.
This includes Azarga's Dewey-Burdock project in South Dakota, which has measured and indicated resources of 8.6 million pounds U3O8 at an average grade of 0.25% U3O8 and is at an advanced stage of permitting. A NI 43-101 preliminary economic assessment at Dewey Burdock completed in 2015 estimated annual ISL production of about 1 million pounds U3O8 per year.
URZ is a uranium exploration and development company that is primarily engaged in the evaluation, acquisition and development of prospective ISL uranium properties and owns the Gas Hills, Juniper Ridge and Shirley Basin properties in Wyoming as well as properties in Utah and Colorado.
Glenn Catchpole, CEO and director of URZ Energy, said the merger would create the USA's "preeminent" ISL uranium developer. "I believe the transaction is timely, with the worldwide growth in nuclear reactor construction and confidence returning to the uranium sector," he said.
Azarga will acquire all of the issued and outstanding shares of URZ Energy for consideration of 2.0 Azarga shares for each URZ Energy share held. The transaction is expected to be completed in July, at which time Catchpole will be appointed as chairman of the merged company, while Blake Steele will continue in his role as president and CEO of Azarga Uranium.
Researched and written
by World Nuclear News