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Uranium Energy Corp announces acquisition of Roughrider uranium project

Published by , Editorial Assistant
Global Mining Review,

Uranium Energy Corp (UEC) has announced that it has entered into a definitive agreement with a subsidiary of Rio Tinto plc pursuant to which UEC will acquire 100% of Rio Tinto’s wholly-owned Roughrider uranium development project located in the Athabasca Basin in Saskatchewan, Canada.

Under the terms of the transaction, upon close, Rio Tinto will receive US$80 million in cash and 17 805 815 UEC common shares, valued at US$70 million based on the 5-day VWAP of US$3.93 per share as of 7 October 2022. The cash component of the transaction will be fully funded using UEC’s existing balance sheet, which as of 10 October 2022 was over US$173 million in cash and liquid assets.

Amir Adnani, President and CEO of UEC, stated:

“With this accretive fully funded acquisition of the Roughrider Project, we’re able to achieve multiple objectives: 

  1.  100% owned, development-stage assets are rare in Canada’s Athabasca basin, and we’re adding a world-class project to anchor our Canadian high-grade conventional business.
  2. Unlock value from the recently acquired UEX portfolio in the eastern Athabasca Basin as we now have critical mass to advance our production plans.
  3. Accelerate production plans for our Canadian high-grade conventional business given the advanced stage of Roughrider and the first-tier ESG, geotechnical and permitting work completed by Rio Tinto since 2012. We thank Rio Tinto for entrusting UEC with the Roughrider Project and welcome them as our new shareholder.”

“Our next steps for Roughrider will be to first complete an updated S-K 1300 technical report summary based on over 650 diamond drillholes already completed for a total of approximately 225 000 m of drilling on the project. UEC is currently engaging with consultants to develop a technical report update in the next few months. Second, UEC intends to progress permitting and a production study of Roughrider and optimise its integration with UEC’s existing Canadian platform. The acquisition builds on our strategic objective to create the leading western supplier of secure and 100% unhedged uranium with a two-pronged platform: firstly, near-term, fully permitted and low-cost US ISR production; and secondly a Canadian high-grade conventional pipeline.”

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Rio Tinto news Canadian mining news North American mining news