Strathmore to consider offers for uranium assets

Convinced that consolidation in the uranium sector will continue apace, Strathmore Minerals (STM-V, STHJF-O) has retained National Bank Financial to review “transaction alternatives” to maximize shareholder value from its uranium assets in the United States, Canada and Peru.

The “strategic alternatives” under review by the company and its exclusive financial advisor include the possible sale of the company, or certain assets held by the company. The company cautions that at this stage, there is no certainty that any transaction will result from the process.

Since 1996, Strathmore has focused its efforts on acquiring uranium resources that were previously explored or developed by other companies, but were subsequently dropped because of low prices. Company management and its executive advisory board have extensive experience in uranium exploration and project development.

The company currently controls one of the largest land positions in Saskatchewan’s Athabasca basin. In November, the company reported that it had completed a 6,290-line-km airborne geophysical survey over its Davy Lake property, which covers 6,000 sq.-km in the north-central portion of the basin and is the largest contiguous land package in the basin.

The survey revealed a number of conductors, including a discrete conductor, more than 51 km long. Geophysical modelling and infill airborne surveys were then carried out to better define targets for a follow-up program of ground geophysics and geological analysis.

Strathmore also expanded its uranium property holdings in Wyoming last fall to add to its existing holdings in the region. The land package includes projects in the Powder River basin and Shirley basin areas. The properties will be evaluated for their potential for in situ leach (ISL) uranium extraction. Several ISL mines are permitted and operating in Wyoming and nearby Nebraska.