Impact: Positive
Consolidated Uranium (CUR) announced that it plans to create and spin out Premier American Uranium (PUR), transferring in ownership of its eight Colorado leases (Arrangement Agreement). Additionally, PUR will acquire Premier Uranium Inc. (wholly owned by Sachem Cove) (Premier Agreement), resulting in ownership of the Cyclone ISR project in WY and Monogram and Atkinson Mesa projects in the Uravan belt of CO. PUR is anticipated to be listed on TSXV, subject to approvals. We view this spin-out positively as it allows CUR to extract value from its non-core Colorado leases while gaining exposure to a highly prospective ISR project in Wyoming, through its ~33% share in the new company. We adjust our model to include CUR’s future share in PUR, currently valued at ~$5.4M (vs nil we had previously allotted for the DOE claims). PUR would offer unique discovery and resource growth potential for investors.
