Uranium Juniors That Could Be The Next Takeover Targets
Sliding commodity prices have sparked a consolidation movement in the resource sector, and uranium has been no exception.
And while U3O8 prices are hovering near 10-year lows, there has been signs of life in this space including recent news that Japan plans to re-start one of its nuclear reactor in August.
All of which makes the following juniors tempting takeover targets.
NexGen Energy Ltd. (TSXV: NXE):
NexGen shares have been off to a stellar start so far in 2015, soaring 97% to its recent price of $0.76. Drill results from the Arrow Zone on its Rook 1 Property in the Athabasca Basin have piqued speculators' interests, which includes 56.5 meters of 11.55% U3O8 that the company reported recently.
Drilling there, so far, has hit mineralization in 44 of 46 holes. Dundee Capital Markets, in a research report, noted that the property could host up to 14 million pounds of uranium. NexGen closed a bought-deal financing on May 26, 2015, and has about $30 million in cash at this time.
Forum Uranium Corp. (TSXV: FDC):
This explorer/developer is tiny in terms of market capitalization (about $2 million) but has a geological team with a history of Athabasca basin discoveries totaling more than 300 million pounds uranium oxide.
The company's 100% owned Clearwater project, up to 70% of which was optioned out to Uracan Resources, is located next to Fission Uranium's Patterson Lake South discovery and Forum has four other drill-ready projects in the Athabasca basin. Forum's share structure is appealing at just 35.7 million shares outstanding.
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