Premier American Uranium (TSX-V:PUR) and Nuclear Fuels (CSE:NF) have entered into an agreement to create a large pure-play uranium exploration company valued at C$102 million ($114.82 million).
Under the arm’s length definitive agreement, Premier American will acquire Nuclear Fuels, in which shareholders will receive 0.33 of a Premier share for each Nuclear share held.
Haywood Securities is acting as financial advisor to Premier American, while Cassels Brock and Blackwell is acting as legal counsel. Canaccord Genuity is acting as financial adviser to Nuclear Fuels, while Morton Law is acting as legal counsel.
The consideration represents an implied consideration of C$0.43 per share based on the 20-day volume weighted average price.
Existing shareholders of Premier American and Nuclear Fuels will own 59% and 41%, respectively.
Premier American says the new company will become an established US uranium explorer with a consolidated portfolio of 12 projects across key US districts, including an estimated resource of 18.6 million pounds of triuranium octoxide in the indicated category and 4.9 million pounds of triuranium octoxide in the inferred category.
Nuclear Fuels owns the Kaycee Uranium Project in Wyoming’s Powder River Basin, which spans a 35 mile trend of altered and mineralised sandstones. In conjunction, the company holds five exploration-stage projects across Wyoming, Utah and Arizona.
Premier American CEO Colin Healey says the Kaycee Project, in combination with the Cyclone Project, is expected to position the company as “one of the most active uranium explorers in Wyoming”.
“We will continue to advance our Cebolleta Project in New Mexico along the development curve,” Healey says.
“This is the second major acquisition for Premier American Uranium within the last 12 months, and it adheres to our goal of growth during a time of pronounced optimism in the nuclear space.”
Meanwhile, Nuclear Fuels CEO Greg Huffman says the transaction offers merits for shareholders.
“We welcome the diversification and depth of the expanded asset portfolio across the key US uranium jurisdictions, most notably a doubling down on exposure in Wyoming,” Huffman says.
“An exploration focus is too rare amongst US uranium miners and the combined company will seek to fill that gap.”
A special meeting held by Nuclear Fuels is expected to be held in Q3 2025. The transaction is anticipated to also close in Q3, subject to receiving all regulatory approvals and satisfying certain closing requirements.
Premier American Uranium is focused on consolidating, exploring and developing uranium projects in the US. The company aims to strengthen domestic energy security and support the transition to clean energy.
Write to Aaliyah Rogan at Mining.com.au
Images: Premier American Uranium
