China's government confirmed 2013 uranium imports reached 19,000
tons of uranium concentrate, exceeding current demand by 7,000
tonnes. China plans to install 50 GW of nuclear capacity by 2017, a
300% increase from currently levels of about 16 GW.
On April 17, 2014 Macusani Yellowcake (TSX-V:YEL)
(FRANKFURT:QG1.F) and Azincourt Uranium (TSX-V:AAZ) announced a
planned merger that will create one of the largest undeveloped
uranium projects in the world.
The merged companies will have a total combined resource of
49.67 M lbs of Measured and Indicated (M&I) contained U3O, and
47.49 M lbs of inferred contained U3O8.
Azincourt CEO and President Ted O'Connor spent the last decade
assessing uranium projects around the globe.He previously worked in
senior management positions at Cameco Corporation – an $8 billion
company and one of the world's largest uranium producers. AAZ's
chairman, Ian Stalker, is the former CEO of UraMin which was sold
to Areva for $2.5Bn.
Ted O'Connor will be appointed as CEO of Macusani following
completion of the transaction, and Laurence Stefan, current
President and CEO of Macusani, will continue his role as President
and COO. Mr. O'Connor and Ian Stalker, Chairman of Azincourt, will
also join a six member board of directors of Macusani.
The deal appears highly advantageous for current AAZ
shareholders and indicates a good entry point for savvy commodity
investors.
Azincourt retains its joint venture in Saskatchewan, Canada with
the Athabasca Basin's leading exploration company, Fission Uranium,
exploring the highly prospective Patterson Lake North (PLN)
property, while gaining 68 million common shares of Macusani, a
larger uranium company in Peru.
The PEA's base case evaluation concludes a post-tax Net Present
Value of $417 million – 15 times the current combined market
capitalisation of both companies.
Macusani and Azincourt will combine their respective Management
Teams and Board of Directors to create a wider, deeper pool of
expertise to drive development and capital market activity as well
as minimising the related overhead costs.
"This transaction represents an inflection point for both
Macusani and Azincourt," stated Ted O'Connor, current President and
CEO of Azincourt. "As a former Director with Cameco, I've had the
opportunity to evaluate uranium projects all over the world and I
believe that the investment community will be very hard-pressed to
identify an investment opportunity in the uranium sector that is
more attractive in the context of the current market than
Macusani."
The Athabasca Basin of Saskatchewan, Canada hosts the world's
richest uranium deposits. Fission Uranium recently reported a drill
interval of 38% U3O8 over 10.5 metres. That is approximately 380
times richer than the world average grade of 0.1% U3O8.
Fission Uranium's stock price has increased 178% in the last 12
months based on the results of a strategic drill program on the
Patterson Lake South uranium property.
Last month, David A. Talbot, a senior uranium analyst with
Dundee Capital Markets, initiated coverage on Azincourt with a
"BUY, Venture Risk, No Target."
"We believe that investors should buy Azincourt
Uranium for its prospectivity in the Athabasca Basin," wrote
Talbot. "It's our opinion that PLN represents a top three location
in the PLS discovery area, and this new player has one of the best
technical teams drilling the ground."
PLN is adjacent to Fission Uranium's shallow depth, high-grade
uranium discovery at Patterson Lake South. Fission Uranium's spin
out company, Fission 3.0, is the new partner and operator on this
project, with the same technical and management team as Fission
Uranium.
On April 24, 2014 Azincourt exercised a Year 2 Option with
Fission 3.0 at PLN, announcing an aggressive exploration program
beginning immediately on quality targets.
The initial exploration program completed in 2014 proved the
prospectivity of the conductive/structural systems that were drill
tested, as well as identifying a new 8.5 km northern conductor
system target. Other targets were refined throughout the entire
project area.
Azincourt will continue funding exploration work into Year 2 of
its earn-in Option at the PLN project. Work is starting well ahead
of the June 19 anniversary date
AAZ plans to complete DC Resistivity surveys on the northern
conductor and Broach Lake Conductor systems with line cutting and
grid preparation already underway. Diamond Drill holes are also
planned for the summer and fall as follow-up on the A1 and A4
conductors and on any land-based resistivity targets.
The merger positions Azincourt shareholders to own
two distinct uranium investments with different risk/return
characteristics: Macusani, a pure-play, dominant uranium
development company focused in Peru, and Azincourt, an
Athabasca-focused uranium exploration company.
China has 28 reactors under construction with five scheduled to
be connected to the grid in 2014. China is suffocating in a cloud
of pollution. Nuclear is the only solution. Domestic uranium mining
currently supplies about 25% of China's uranium demand.
Azincourt is currently trading at .17 with a market
capitalisation of $8.4 million.
Legal Disclaimer/Disclosure: A fee has been
paid for the production and distribution of this Report. This
document is not and should not be construed as an offer to sell or
the solicitation of an offer to purchase or subscribe for any
investment. No information in this article should be construed as
individualized investment advice. A licensed financial advisor
should be consulted prior to making any investment decision.
Financial Press makes no guarantee, representation or warranty and
accepts no responsibility or liability as to its accuracy or
completeness. Expressions of opinion are those of the author's only
and are subject to change without notice. Financial Press assumes
no warranty, liability or guarantee for the current relevance,
correctness or completeness of any information provided within this
article and will not be held liable for the consequence of reliance
upon any opinion or statement contained herein or any omission.
Furthermore, we assume no liability for any direct or indirect loss
or damage or, in particular, for lost profit, which you may incur
as a result of the use and existence of the information, provided
within this article.
Also, please note that republishing of this article in its
entirety is permitted as long as attribution and a back link to
FinancialPress.com are provided. Thank you.
CONTACT: Azincourt Uranium Inc. (TSX-V:AAZ)
Suite 800 - 789 W.Pender Street
Vancouver, B.C. V6C 1H2
Toll-Free: 1-855-237-6274
Phone: 604-662-4955
Email: info@azincourturanium.com