Uranium Royalty Corp (TSX: URC) is moving to significantly scale its North American footprint through a $1.9 billion merger with Sweetwater Royalties, a move that will establish the company as the largest private mineral landowner in Wyoming.
The transaction involves Uranium Royalty acquiring a 92% interest in Sweetwater from Orion Resource Partners and the Ontario Teachers’ Pension Plan. In exchange, the sellers will receive $330 million in cash and approximately $813 million in newly issued Uranium Royalty shares, resulting in a combined entity with an estimated enterprise value of $2.4 billion.
The acquisition fundamentally shifts the company’s asset base. Sweetwater holds more than 4 million acres of mineral rights in the Western United States, primarily concentrated in Wyoming’s Green River Basin. While the deal strengthens the company’s position in the uranium sector, it also provides immediate exposure to the global soda ash market through Sweetwater’s extensive trona royalties.
By integrating these industrial mineral assets, the company gains access to consistent production revenue that is decoupled from the volatility of the nuclear fuel cycle. Trona is a critical component in glass manufacturing and the production of lithium-ion batteries, providing a steady revenue stream that complements the company’s long-term uranium growth profile.
Sweetwater’s assets currently generate average adjusted EBITDA of $74 million, while soda ash production capacity at the Trona assets are expected to increase by 60% in the coming years.
The deal structure ensures that Orion and Ontario Teachers’ remain major stakeholders, signaling institutional confidence in the royalty-based business model. Orion is expected to retain a 43% interest upon closing, while Ontario Teachers’ will hold 16%.
As part of the arrangement, Uranium Energy Corp (NYSE: UEC) has agreed to subscribe for $40 million in Uranium Royalty Corp subscription receipts to assist in funding the cash portion of the transaction.
The closing of the transaction remains subject to customary conditions, including regulatory approvals and the consent of Uranium Royalty shareholders. Closing of the transaction is currently expected to occur in Q3 2026.
Uranium Royalty Corp last traded at $5.40 on the TSX.
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