Uranium Royalty (NASDAQ:UROY) has completed its combination with the Sweetwater entities, adding a cash-flowing trona royalty portfolio and extensive landholdings across Wyoming, Utah, and Colorado, US.
The transaction creates what the company describes as the second-largest publicly listed corporate landowner in the US, excluding real estate investment trusts, and the largest in Wyoming.
The newly formed US-domiciled parent company, also named Uranium Royalty, controls about 850,000 acres of fee surface rights and 4.5 million acres of mineral rights.
The land package covers parts of Wyoming’s Green River basin, which hosts the world’s largest known trona deposit. It includes royalties from five operating soda ash mines.
Uranium Royalty says planned expansions at the mines are expected to increase attributable production capacity by more than 60% without requiring further capital contributions from the company.
Affiliates of Orion Resource Partners and Ontario Teachers’ Pension Plan subsidiary HRG Metals contributed and sold their combined 92% interest in the Sweetwater entities under the arrangement.
CEO Scott Melbye says the added cash flow will support Uranium Royalty’s uranium strategy.
“Our extensive land ownership, encompassing one of the world’s largest known trona resources and including five currently operating mines positioned among the lowest on the global cost curve, is expected to provide steady cash flows to advance our uranium aspirations at a time of significant nuclear energy growth,” Melbye says.
Uranium Royalty secured a US$50 million ($71.7 million) senior secured revolving credit facility from Bank of Montreal and drew US$40 million as bridge financing for part of the transaction’s cash consideration and expenses.
The bridge matures on 31 January 2027. After its repayment, the facility will become available on a revolving basis and mature on 31 July 2029. An accordion provision could increase the facility by up to US$25 million, subject to conditions.
Shareholders received one new Uranium Royalty share for each existing share, while eligible Canadian shareholders could elect to receive exchangeable shares in a Canadian subsidiary.
The new shares begin trading on Nasdaq on 28 July. The former Uranium Royalty shares will be delisted from the Toronto Stock Exchange after the market closes that day.
Write to France Pinzon at Mining.com.au
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