Toronto-based Premier American Uranium (TSX-V:PUR) has completed the acquisition of American Future Fuel, expanding into another major uranium producing region of the US.
The junior explorer, which has a market capitalisation of C$53 million ($58.3 million), has acquired all of the shares in American Future Fuel, which have now been delisted from the Canadian Securities Exchange.
To settle the transaction, Premier American issued 0.17 of a share for each American Future Fuel share held, amounting to 15.5 million Premier American shares.
American Future Fuel owns the Cebolleta Uranium Project, located in New Mexico within the Grants Mineral Belt, which is responsible for about 37% of all uranium produced in the US.
Cebolleta is an advanced exploration project with a recently updated resource of 18.6 million pounds in the indicated category and 4.9 million pounds in the inferred category.
According to American Future Fuel, the Grants Mineral Belt is one of the largest concentrations of sandstone-hosted uranium deposits in the world, historically producing about 350 million pounds.
CEO Colin Healey says completion of the acquisition marks a pivotal step in Premier American’s effort to “consolidate high-quality assets in the premier uranium districts of the US”.
“We now have a strong foothold in three prominent districts known for their significant uranium endowment and potential: the Grants Mineral Belt in New Mexico, the Great Divide Basin in Wyoming and the Uravan Mineral Belt in Colorado,” he says.
The company has now also banked C$5.8 million from a recent private placement that was led by cornerstone investors including Sachem Cove Partners, IsoEnergy and Mega Uranium.
Premier American is planning to undertake two fully funded drill programs at the Cebolleta and Cyclone projects this year.
The Cebolleta Project sits adjacent to the historic Paguate and Jackpile mines that historically produced 100 million pounds of uranium.
Write to Angela East at Mining.com.au
Images: Premier American Uranium
