Plans for a new, publicly traded uranium company are taking shape as the board of CAT Strategic Metals approved a spin-off of its South Preston uranium project, in Canada’s Athabasca basin.
The spin-off will be tentatively named Uranium Investment Corp (UIC).
In terms of the transaction, 100% of UIC shares will be distributed to CAT’s shareholders on a one-for-one basis.
“We have great confidence that now is the opportune time for this, given the current conditions in the marketplace. The uranium industry, particularly in Canada, is experiencing rapid growth, demanding increased attention for development and a different capital allocation strategy for each company,” said CAT chairperson and CEO Robert Rosner.
While UIC will develop the South Preston uranium property, CAT will invest more aggressively for growth, particularly when it comes to the Gold Jackpot property, in Nevada.
CAT also owns the Burntland project, in New Brunswick.