US-based United Energy Corp (UEC) has emerged as the biggest diversified North America-focused uranium company following the successful acquisition of Canadian junior UEX.
UEX shareholders last week approved the transaction with UEC, and the Supreme Court of British Columbia followed suit. Pursuant to the terms of the arrangement, UEX shareholders received 0.090 common shares of UEC for each UEX common share held.
UEC had to improve its offer for UEX, after Denison Mines tossed its hat into the ring.
“We are pleased to have completed our acquisition of UEX. This marks UEC’s second successful highly accretive M&A [merger and acquisition] transaction in the last year, creating the largest diversified North America-focused uranium company,” said president and CEO Amir Adnani.
“The competing interest for UEX from other industry participants further validates the significant upside and strategic rationale we identified in UEX’s portfolio of high-grade projects in the world-class Athabasca basin of Saskatchewan,” he added.
Adnani said that the company’s acquisitions of Uranium One Americas (U1A) and UEX had created substantial shareholder value, with meaningful expansion of its production capabilities and resource pipeline.
The U1A transaction doubled UEC’s processing capacity, in-situ recovery (ISR) resources and permitted projects in the US, while the UEX transaction doubles the size of its measured and indicated uranium resources.
“With no debt and over $180-million of cash and liquid assets, including physical uranium, UEC has an unparalleled industry position to capitalize on nuclear power’s growing role as a climate change solution, contributing towards the mega trends of decarbonisation, electrification and energy transition.”
Adnani noted that with UEC’s assets located only in the western hemisphere, it had a key differentiator in the current bull market.
Western utilities are increasingly seeking to secure supplies from uranium projects in politically stable and proven jurisdictions.