Impact: Slightly Positive
Consolidated Uranium (CUR) provided an update regarding recent developments of its proposed spin-out of Labrador Uranium (LUR) (Private, Not Rated). LUR has expanded its land holdings around various projects and bolstered its technical team, which should help improve chances for exploration success. We note these new additions come in time for aggressive summer 2022 work programs at its Moran Lake, CMB and Notakwanon projects. The CUR shareholder vote to approve the spinout is scheduled for 3-Feb-22, after which we would expect the deal to close by the end of Feb/22 and LUR to list on the CSE. In our view, the spin-out creates a unique uranium exploration vehicle in Labrador. LUR begins life with an existing resource base, massive land package and considerable upside potential. Its large project portfolio is situated in a bona-fide uranium camp that extends for 260km x 75km. Moreover, Labrador is an excellent mining jurisdiction, ranked 8th for mining attractiveness by Fraser Institute.