Strathmore receives superior offer for Pine Tree-Reno Creek

Uranium explorer Strathmore Minerals (STM-V) has received an unsolicited competing offer from an unidentified foreign-based corporation for its Pine Tree-Reno Creek properties in Wyoming.

The competing offer by the foreign company consists of US$17.5 million cash, US$2.5 million in shares of the offering company and a 5% gross production royalty.

The royalty can be repurchased in whole or in part by the offering company at any time for US$2 million (US$1 million in cash and US$1 million in shares per 1% royalty reduction.)

In addition, the offering company has matched previously agreed terms to acquire American Uranium Corp.‘s (ACUC-O) interest in the project. (The Pine Tree-Reno Creek Properties were joint-ventured with American Uranium Corporation in 2007.)

Strathmore’s board has accepted the competing offer, which it believes is superior to Bayswater Uranium Corp.‘s (BAY-V) earlier bid for the property.

Reno Creek is an advanced, near-surface uranium project in northeastern Wyoming’s Powder River basin.

The properties are between AREVA’s Christensen Ranch in-situ recovery (ISR) operation, 40 km to the northwest, and Cameco Corp.’s (CCO-T, CCJ-N) producing Smith Ranch ISR facility 48 km to the south.

The project comprises National Instrument 43-101-compliant measured and indicated resources of 10.96 million pounds of U₃O₈ at an average grade of 0.066% U₃O₈ and 4.73 million pounds of U₃O₈ at an average grade of 0.063% U₃O₈ in the inferred category.

In early December, Strathmore had agreed to grant NCA Nuclear, a wholly owned subsidiary of Bayswater Uranium Corp., and American Uranium Corp. the option to acquire the Pine-Tree Reno Creek properties for cash and shares of Bayswater Uranium worth US$31 million.

Bayswater has seven business days to complete the existing transaction or match the terms of the competing offer.

At presstime Strathmore was trading at 62¢ per share. It has a 52-week trading range of 20.5¢-82¢ with 72.4 million shares outstanding.