February 18, 2022
Consolidated Uranium Inc. (TSXV:CUR, BUY, C$4.50 target, David A. Talbot) announced initial work programs on three of its recently acquired uranium projects in the US; the Tony M, Daneros, and Rim mines. CUR acquired these fully permitted and developed underground mines from Energy Fuels Inc. (TSXV:EFR, BUY, C$11.85 target, David A. Talbot) in late 2021 and is planning to commence surface rotary and core drilling on each of them by Q2/22, to verify their historical resources in preparation of resource updates. At Daneros, plans are to concurrently develop ventilation and monitoring systems in addition to upgrading the current small mine permit (<5 acres) to a large mine permit (~45 acres). Energy Fuels will be the operator and will work towards getting these projects production-ready. The expected budget is $2M. CUR’s alliance with Energy Fuels, the largest US uranium producer, allows it to move these three projects forward. It is likely these start-ups will be staged, perhaps with vanadium-rich Rim first, then Daneros and Tony M. While 2020 and 2021 were all about M&A activity, such work initiatives in 2022 are likely to move Consolidated Uranium closer to production and away from being simply a global consolidator of uranium projects. This is likely to be beneficial in tighter uranium market with higher prices. We note that CUR has 12 projects in 7 low-risk countries. The company is well capitalized with a robust pipeline of projects and acquisition targets, and strong management with significant uranium, finance, and M&A experience. The company also provided an update on the acquisition of the Matoush project (read more), whereby it will issue 821,976 common shares at C$2.43/sh, and pay C$1.5M cash as a deferred payment in connection with this acquisition in Quebec, upon regulatory approval. Read more
