Uranium, or yellowcake, as it is sometimes referred to.
Photo by: Bloomberg
TORONTO (miningweekly.com) – Peru-focused uranium explorers Macusani Yellowcake and Azincourt Uranium on Friday announced that they had inked a nonbinding letter of intent under which Macusani could acquire all of Azincourt’s neighbouring uranium properties on the Macusani Plateau for 68.35-million Macusani shares.
If the all-scrip deal goes ahead as planned, Macusani would on a pro-forma basis gain control of one of the largest undeveloped uranium projects in the world, containing substantial National Instrument 43-101-compliant measured, indicated and inferred uranium resources.
Pending due diligence investigations by both parties, Macusani and Azincourt have agreed to work towards signing definitive documentation by May 30, with the transaction expected to be completed by June.
The transaction was expected to result in substantial synergies for both companies, combining more than 949 km2 in one of the largest, most-prospective uranium districts in the world.
Macusani would gain control of a combined resource of 49.67-million pounds of measured and indicated uranium oxide (U3O8) and 47.49-million pounds of contained U3O8 in the inferred category.
According to its January preliminary economic assessment (PEA), Macusani’s project currently has a measured and indicated resource of 31.47-million pounds of uranium, and 30.09-million pounds of U3O8 in the inferred category.
Azincourt’s properties had a historical measured and indicated resource of 18.2-million pounds of U3O8 and 17.4-million pounds of inferred U3O8.
Macusani said that it expected that Azincourt's uranium resources could be easily incorporated into its existing mine plan, which could result in substantial development and operating efficiencies and economies of scale.
After the transaction had closed, a new PEA would be undertaken on the combined property portfolio, and Macusani and Azincourt believed that the economic returns as outlined in the Macusani PEA would be even stronger as a result of the operational synergies.
Azincourt's TSX-V-listed stock closed down 2.22% on Thursday at C$0.22 apiece, and that of Macusani rose 11.11% to C$0.10 apiece.