Uranium Mining Market Performance Booming as Demand Skyrockets, Projected to Reach $11 Billion
PALM BEACH, Fla., Jan. 17, 2024 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - Uranium mining is the extraction of uranium ore from the ground for use in nuclear power plants and the development of nuclear weapons. Uranium is a radioactive element that occurs naturally in trace amounts in soil, rock, and water. Uranium is primarily used as a fuel in nuclear reactors, where it undergoes nuclear fission to produce energy in the form of heat. The uranium mining market’s performance is influenced by several drivers, which are factors or conditions that encourage or stimulate growth and activity within the industry. The demand for nuclear energy plays a significant role in driving uranium mining. As countries seek to reduce greenhouse gas emissions and diversify their energy sources, nuclear power generation becomes an attractive option. The construction and expansion of nuclear power plants lead to increased uranium demand, driving uranium mining activities. According to RationalStat’s most recent industry report, the Global Uranium Mining Market value was estimated at US$ 8,086.6 million in 2023 and is expected to rise at a strong CAGR of over 5.0% over the forecast period of 2023-2030. The report says: “The global uranium mining market is expected to reach US$ 11,388.3 million by 2030, with an annual growth rate of more than 5.0%. The uranium mining market is estimated to be 53.0 thousand tons (kt) in 2023. About 66% of the global production of uranium from mines is from Kazakhstan, Canada, and Australia.” Active mining companies in the markets this week include Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF), ATHA Energy Corp (CSE: SASK) (OTCQB: SASKF), NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE), Uranium Energy Corp (NYSE American: UEC), F3 Uranium Corp. (OTCQB: FUUFF) (TSX-V: FUU).
The report continued: “Nuclear power is regarded as a clean energy source because it produces no greenhouse gases when in operation. Countries investing in nuclear energy to cut carbon emissions and battle climate change are boosting the uranium market. Based on the mining method, the open-pit mining segment is the most common method of uranium mining, accounting for over 90% of global uranium production in 2022. Open-pit mining is a relatively simple and inexpensive method of mining, and it is suitable for deposits that are close to the surface. Some leading players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers & acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players.”
Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) Announces Expansion of Largest Uranium Exploration Project in Western Athabasca Basin - Stallion Uranium Corp. is pleased to announce that it has acquired by staking three new prospective uranium exploration dispositions (or “claims”) in northern Saskatchewan, increasing Stallion’s total land package to 313,381 hectares (774,381 acres). The three dispositions add an additional 13,175 hectares to Stallion’s 100% owned holdings in the Athabasca Basin.
"In the Athabasca Basin, home to the highest-grade uranium deposits in the world, landholdings have become an increasingly competitive environment. With this staking we have added over 32,000 highly prospective acres to what was already the largest exploration project in the prolific southwestern Athabasca Basin,” stated Drew Zimmerman, CEO. “This addition builds on Stallion’s strategy to secure large, high potential land packages and work to advance the most compelling target areas towards drill testing, giving the company the highest probability of discovering the next significant uranium deposit.”
Darren Slugoski, Vice President Exploration, Canada, stated “The new claims were strategically staked as they complement our existing properties based on the most current data available. The claims host magnetic signatures which could represent the extensions of structural anomalies from the adjacent dispositions held by the company and provide additional areas of interest.”
New Mineral Dispositions - Stallion staked an additional 13,175 hectares contiguous to the company’s existing projects in the Western Athabasca Basin. These additional claims not only increase Stallion's land position in the area but cover areas the company views as highly prospective. The growth of the exploration package is directly east of the world class Arrow uranium deposit owned by Nexgen Energy Ltd.
The newly staked claims, when combined with existing claims, allow for continuous coverage of key geological features identified by the company. The claims have never been drill tested and host several kilometre-scale under-explored prospective zones. Stallion will look to follow its roadmap to discovery by implementing state of the art geophysical surveys looking to advance the most compelling target areas. The exploration will focus on areas with magnetic lows and conductive geophysical signatures which have been known to correlate with uranium mineralization. CONTINUED… Read these full press releases and more news for Stallion Uranium at: https://stallionuranium.com/news/press-releases/
Other recent developments in the mining industry of note include:
Uranium Energy Corp (NYSE American: UEC) recently announced that the Company's Board of Directors has approved restarting uranium production at its fully permitted, and past producing, Christensen Ranch In-Situ Recovery ("ISR") operations in Wyoming. The recovered uranium will be processed at the fully operational Irigaray Central Processing Plant ("CPP") with a current licensed capacity of 2.5 million pounds U3O8 per year. The Irigaray CPP is the hub central to four fully permitted ISR projects in the Powder River Basin of Wyoming, including Christensen Ranch.
The first production is expected during August of this year and will be funded with existing cash on the Company's balance sheet. As UEC's strategy has been to remain 100% unhedged, produced uranium will be sold at prevailing spot market prices which was $106 per pound U3O8 as of January 15, 2024 as reported by UxC.
In the coming months, the Company will provide additional information on the expected volumes for the first year of production. The key focus in the final pre-production phase before the August restart is hiring and training of additional operations personnel to augment UEC's experienced operations team to ensure a successful ramp-up of uranium production. New personnel are anticipated to be hired from local communities such as Buffalo, Gillette, Casper, Kaycee and Wright.
F3 Uranium Corp. (OTCQB: FUUFF) (TSXV: FUU) recently announced that it has initiated steps to spin-out (the "Spin-Out") 14 of the Company's prospective uranium exploration projects in the Athabasca Basin including the Murphy Lake, Cree Bay, Hearty Bay, Clearwater West, Wales Lake, Todd, Smart Lake, Lazy Edward Bay, Grey Island, Seahorse Lake, Bird Lake, Beaver River, Bell Lake and Flowerdew Lake properties (collectively, the "Properties") into a newly incorporated wholly-owned subsidiary to be named F4 Uranium Corp. ("F4"). The Patterson Lake North Property along with the Broach and Minto Properties (collectively, the "PLN Project"), totaling 39,946 hectares, will remain with F3. It is expected that the Spin-Out will be effected by way of a plan of arrangement (the "Arrangement"), under the Canada Business Corporations Act.
Pursuant to the proposed terms of the Arrangement, the Company will transfer the Properties to F4 in exchange for common shares of F4 (the "F4 Shares"), all of which the Company intends to distribute to its shareholders on the basis of one F4 Share for every 10 common shares of F3 held. Subsequent to the completion of the Arrangement, the Company intends to list the shares of F4 (the "Listing") on the TSX Venture Exchange (the "TSXV").
ATHA Energy Corp. (OTCQB: SASKF) (CSE: SASK) recently announced that, further to its press releases dated December 7, 2023, ATHA has completed a private placement offering of: (i) 8,363,710 charitable federal flow-through common shares of ATHA (the “Federal CFT Shares”) at an issue price per Federal CFT Share of $1.57 and 3,636,290 charitable Saskatchewan flow-through common shares of ATHA (the “Saskatchewan CFT Shares” and, together with the Federal CFT Shares, the “Offered Shares”) at an issue price per Saskatchewan CFT Share of $1.75 (the “CFT Offering”); and (ii) 4,000,000 subscription receipts of ATHA (the “Subscription Receipts”) at an issue price per Subscription Receipt of $1.00 (the “SR Offering” and together with the CFT Offering, the “Offering”) for aggregate gross proceeds of approximately $23,494,532.20.
Troy Boisjoli, CEO of ATHA commented: “Today’s close of ATHA’s ~$23.5 million financing demonstrates the strong institutional support for ATHA’s scaled exploration strategy and upon closing of our recently announced acquisitions, will provide the Company with approximately C$65 million to fully fund our planned exploration activities to provide leading exploration exposure in the uranium sector. The world is now entering what is anticipated to be an unprecedented upswing in the uranium cycle – one we feel is just the beginning. From inception, ATHA has been structured for this opportunity and the upcoming year will be an extremely exciting one for the Company as we continue to execute on key exploration and growth strategy objectives through 2024 and beyond.”
NexGen Energy Ltd. (NYSE: NXE) (TSX: NXE) recently announced that it has updated its at-the-market equity program (the "ATM Program") to offer and sell up to C$500 million of common shares from treasury ("Common Shares").
Sales of Common Shares, if any, will be made pursuant to the terms of an equity distribution agreement dated December 11, 2023 (the "Sales Agreement") among the Company, Virtu ITG Canada Corp., as Canadian agent, and Virtu Americas, LLC, as U.S. agent (together, the "Agents"), on the TSX and/or the NYSE, and/or any other marketplace for the Common Shares in Canada or the United States or as otherwise agreed between the Agents and the Company. The volume and timing of sales under the ATM Program, if any, will be determined in the Company's sole discretion, and at the market price prevailing at the time of each sale, and, as a result, sale prices may vary.
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