IsoEnergy Limited (TSX-V:ISO)’s C$903 million, all-stock acquisition of Consolidated Uranium could lead to many more deals in the uranium space, in what PI Financial analysts believe is the "dawn of a new era for global uranium exploration and development."
"The jewel in the combined company's crown will be IsoEnergy's high grade Hurricane deposit which ranks as the most significant uranium discovery made in the Athabasca Basin in recent years," the analysts wrote.
Shares of Consolidated Uranium climbed 9% to $2.08 following the announcement, while IsoEnergy stock slid 12% to $4.23.
Recently, we wrote about one uranium company that has emerged as a top takeover target as uranium prices have rallied to levels not seen in 12 years, exceeding US$66 per pound recently. Some analysts see the spot price reaching $75-$80 a pound by the end of December.
The surge in the value of the underlying commodity has also boosted the stock prices of most uranium companies this year, with industry giant Cameco Corp’s stock powering 73% higher year to date and Energy Fuels Inc’s shares gaining 36% over the same time frame.
And investor interest has trickled down to many of the smaller uranium companies. Anfield Energy Inc. (TSX-V:AEC, OTCQB:ANLDF), for example, has since its share price climb 42% since the beginning of January.
Anfield is focused on near-term production from its Shootaring Canyon mill, Velvet-Wood and Slick Rock projects located in the western United States.
Shootaring is one of only three licensed, permitted and constructed uranium mills in the US, with surface stockpiles at the facility that include an estimated 370,000 pounds of uranium oxide at an average grade of 0.147%.
The company also recently acquired the Marquez-Juan Tafoya uranium project in New Mexico, with an historical Indicated resource of 18.1 million pounds of uranium.
As well, Baselode Energy Corp (TSX-V:FIND, OTCQB:BSENF) controls 100% of about 264,172 hectares of exploration land in Saskatchewan’s Athabasca Basin.
The company recently confirmed new uranium mineralization at depth in drilling at the ACKIO high-grade uranium zone on its Hook project.
Its stock has gained 7% year to date.
Contact Sean at sean@proactiveinvestors.com