Palisades Goldcorp (TSXV: PALI) is apparently acquiring assets within the uranium sector. The company announced this morning that it will be acquire Radio Fuels Energy (CSE: CAKE) in an all-stock transaction.
The arrangement will see Radio Fuels shareholders receive 0.060538 of a Palisades common share for each share held, which based on yesterdays closing price equates to roughly $0.082 per share – which is below Radio Fuels’ most recent closing price of $0.085. Radio Fuels shareholders are expected to hold 24% of Palisades upon closing.
While Radio Fuels currently holds uranium assets, the appeal to Palisades appears to be their claims in Nevada. On a post-combination basis, Palisades will become the third largest claim holder in the state, behind Nevada Gold Mines and Kinross Gold. Radio Fuels in August acquired NV King Goldlands, which held a 3% net smelter royalty on the Atlanta Gold Mine, currently being advanced by Nevada King Gold, along with the large land package of claims.
Outside of the Nevada assets, the company holds the Eco Ridge Project in Ontario, which based on a 2021 resource estimate features 107 million pounds of uranium equivalent in the indicated and inferred category, at about 0.08% U3O8.
Palisades is also expected to boast reserves of $120 million in cash and marketable securities on a post-combination basis.
“This transaction represents a significant opportunity for Radio Fuels shareholders. Palisades is a significant investment company in the resource and mining sector and we feel that merging the two companies will unlock additional value for Radio Fuels shareholders while still providing Radio Fuels shareholders with unparalleled leverage to uranium and rare earth elements through its 100% ownership of the Eco Ridge Project,” commented Philip O’Neill, CEO of Radio Fuels and the former chief operations officer of Palisades Goldcorp.
The transaction is currently slated to close in February 2025, subject to shareholder approval.
Palisades Goldcorp last traded at $1.36 on the TSX Venture.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
