Uranium juniors are continuing to consolidate amid declining investor interest in the sector. The latest transaction will see Nexus Uranium (CSE: NEXU) acquire Basin Uranium (CSE: NCLR) in an all-stock deal.
Under the terms of a definitive agreement, Basin shareholders are set to receive 1.1 common shares of Nexus for each share of Basin held. A total of 30.0 million common shares are expected to be issued by Nexus under the terms of the transaction. Basin shareholders are expected to own 40% of the resulting company.
At the same time, Basin shareholdings are to receive 0.11 shares of a gold-focused SpinCo for each share of Basin held, with total consideration under the deal said to be valued at $0.137 per share, valuing Basin at $3.6 million. The spinout is expected to contain Basin’s Napoleon Gold, Yukon Gold and CHG projects.
The transaction is expected to establish Nexus as a uranium explorer with a total of six uranium projects, with those projects split between conventional mining projects in the Athabasca Basin, and ISR-amenable projects in the US. A total of two projects are found in the Basin, while the remainder are US-based, including the Chord project with inferred resources of 2.75 million pounds U3O8.
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Chord appears to be the focus of this transaction, with Nexus indicating that permitting is nearly complete for an exploration program that would enable the company to aggressively drill test an exploration target. That target is estimated to contain 1.42 million to 4.23 million pounds of U3O8. Current permit applications outline a 60,000 foot drill program that would be focused on expanding the size of the current resource.
“This transaction brings together complementary assets located within top-tier uranium jurisdictions in North America that bolsters the company’s position as a premier uranium exploration company. It provides for significant diversification while retaining a 100% uranium focus which would benefit from improving US & Canadian market fundamentals,” commented Jeremy Poirier, CEO of Nexus Uranium.
The transaction remains subject to approval by Basin Uranium shareholders, alongside standard court and regulatory approvals. Post transaction, Basin SpinCo is expected to be led by Basin CEO Mike Blady, with the company intending to list on a Canadian stock exchange.
Nexus Uranium last traded at $0.10 on the CSE.
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