Uranium Energy Buys Athabasca Basin Projects From Rio Tinto, Boosts Canadian Portfolio

Uranium Energy Corp UEC disclosed the completion of the deal with Rio Tinto Exploration Canada Inc., a subsidiary of Rio Tinto PLC RIO, for buying a portfolio of exploration-stage projects in the Athabasca Basin, Saskatchewan, Canada, for C$1.5 million.

The company has acquired a 60% equity stake in the Henday Lake joint venture, 100% of the Milliken project, and a 50% in the Carswell joint venture project. 

With this acquisition, UEC has added 44,444 acres of prospective ground in the Athabasca Basin to its existing portfolio of 1,091,639 acres.

The deal is at par with the company's strategy of expanding its footprint in Canada, and past year buyouts have boosted UEC's total attributed current resources by 109.9 Mlbs of Indicated resources and 71.0 Mlbs of Inferred resources attributed to the Roughrider, Christie Lake, Horseshoe-Raven, Shea Creek, and Millennium projects. 

Amir Adnani, President and CEO said, "This is our third acquisition in the Athabasca Basin in the last 12-months and builds on the landmark acquisitions of UEX and the Roughrider project. This acquisition represents an important component in our strategy to assemble a premier North American uranium portfolio, featuring near-term US production, Canadian development-stage projects including joint ventures, and a pipeline of exploration projects with excellent growth potential."

As of April 30, 2023, UEC had $125.4 million of cash and liquid assets and no debt.

Price Action: UEC shares are trading higher by 0.25% at $4.09 on the last check Tuesday.