Consolidated Uranium announces acquisition of Virginia Energy Resources

Coles Hill is the largest undeveloped uranium project in the US and one of the largest in the world with historical mineral resource estimates of:

• Indicated mineral resources of 119.6 million t at an average grade of 0.056% U3O8 containing 132.9 million lb of U3O8. 
• Inferred mineral resources of 36.3 million t at an average grade of 0.042% U3O8 containing 30.4 million lb of U3O8.
• This estimate is considered to be a “historical estimate” under National Instrument 43-101 – standards of disclosure for mineral projects (“NI 43-101”) and is not considered by CUR or Virginia Energy to be current.

Philip Williams, Chairman and CEO of Consolidated Uranium commented: 

“We are very excited to enter into this agreement to acquire Virginia Energy. The acquisition of Coles Hill complements our existing US portfolio of assets, while significantly increasing our uranium exposure globally. We have three buckets of projects in our portfolio: near term production, mid-term exploration and development and longer-term call options which provide exposure to large, high-quality projects with historic impediments to advancement. Today, Coles Hill fits into the latter category. However, we believe the future does not have to mirror the past particularly for a large uranium resource in the US where increasingly, the need for new sources of domestic supply is becoming a critical issue for utilities and politicians alike. Our due diligence process highlighted the strong local support for the project which is paramount for future development. Our plan is to take a measured approach to advancing the project with a focus on education and engagement with the local, state and federal levels of government. We compliment Virginia’s management team, particularly Walt Coles Sr., in keeping this project going through its tumultuous history and will endeavour to steward the project forward with the same level of care and ability.”

Walter Coles Sr., Chairman and CEO of Virginia Energy commented:

“We are very pleased to announce this agreement with Consolidated Uranium. We see this transaction as a tremendous outcome for Virginia Energy shareholders who will receive an immediate and substantial premium to the Virginia Energy share price. Importantly, the transaction will preserve our shareholders’ exposure to the Coles Hill project while providing diversification to an excellent portfolio of near-term productions assets in the US as well as a robust portfolio of exploration and development projects around the world. Having run Virginia Energy since its formation in 2007, I am acutely aware of the inherent risks of being a single asset, single jurisdiction uranium developer. Under the stewardship of the CUR team, which boasts decades of global uranium experience, we feel very confident that, over time, our vision for Coles Hill to become an important source of US uranium production for the domestic nuclear industry will come to fruition. I look forward to watching this progress as a supportive shareholder of the combined entity. I would like to take the opportunity to recognise and thank the Virginia Energy board and team for their dedication and contribution to the company.”

Read the article online at: https://www.globalminingreview.com/mining/17112022/consolidated-uranium-announces-acquisition-of-virginia-energy-resources/