Canada-based Consolidated Uranium (CUR) has announced plans to spin out its majority-controlled subsidiary Premier American Uranium (PUR) as a new pure-play uranium company in the US.
Premier American Uranium is engaged in acquiring, exploring, and developing uranium projects across the US states of Wyoming and Colorado.
In connection with the proposed spin-out, Consolidated Uranium has signed an arrangement agreement with its subsidiary.
As part of it, the former will transfer ownership of some indirect 100% owned subsidiaries which hold eight leases awarded by the US Department of Energy (DOE) and certain patented claims in Colorado to Premier American Uranium.
This will be in exchange for Premier American Uranium’s 7.75 million Class A common shares. A part of this will be distributed on a pro rata basis to Consolidated Uranium’s shareholders.
Premier American Uranium is intended to be listed on the TSX Venture Exchange in Canada.
Consolidated Uranium chairman and CEO Philip Williams said: CUR’s strategy has been to realise value in our portfolio, either directly by advancing projects to production, or through spinouts/divestures where a compelling strategic rationale could be identified, similar to our Labrador Uranium transaction last year.
“In PUR, we are convinced that this is a case where one plus one could equal much more than two and we believe CUR shareholders will be the ultimate beneficiaries when we complete the planned TSXV listing and direct distribution of PUR Shares in the coming months.”
Additionally, both parties have signed a purchase agreement under which Premier American Uranium will acquire Premier Uranium.
Premier Uranium is a privately held uranium focused project acquisition vehicle in the US which has a 100% stake in the Cyclone project in the Great Divide Basin of Wyoming. It also holds multiple mining claims in the Uravan Mineral Belt of Colorado.
In addition, Premier Uranium has staked 368 unpatented mining claims, spanning nearly 6,940 acres in important areas of the Uravan Mineral Belt.
Premier American CEO and Premier American planned CEO Tim Rotolo said: “For the first time in decades, a large supply deficit, which may push uranium prices higher, has converged with a global nuclear renaissance and newfound bi-partisan political support to safeguard our domestic nuclear fleet from geopolitical risk of a former Soviet-bloc dominated nuclear fuel cycle.
“In respect of this, we started Premier to capitalise on the U.S. uranium resurgence, accumulating projects and waiting for the right time to bring them to market.”
Subject to regulatory approval and other conditions, the spin-out and the TSXV listing are expected to be completed in Q3 2023.
