Uravan announces a process of strategic alternatives
CALGARY, AB, September 7, 2021 / CNW / – Uravan Minerals Inc. (TSXV: UVN) (“Uravan“) has been active as a junior uranium exploration company (relying on sustainable uranium prices, which hardly ever exist) since 2003. However, in 2011, following the earthquake and the tsunami that devastated the Fukushima Daiichi nuclear power plant in Japan, spot and long-term uranium prices are prolonged decline. In 2015, production cuts for most uranium miners were implemented to help reignite low prices in the global uranium market.
Fast forward to 2021, a decade lost to falling spot prices for natural uranium, the story of weak demand persists. We believe the recent upward price movement in the uranium spot market, closing at a high of $ 38.70 per U pound3O8 to September 3rd, has been orchestrated primarily by non-user purchases on very thin uranium exchanges and is not supported by fundamentals. While this uranium buying activity is viewed as positive for the investor, this upward movement in spot prices is considered fleeting due to the lack of real demand between the uranium producer and the uranium producer. user of nuclear energy (i.e. uranium is not a commodity), as well as advances in enrichment technologies. allows nuclear power companies to avoid these markets.
Therefore, due to Uravan’s current financial constraints, relatively low natural uranium spot prices, and lack of access to financial markets or other sources of funding, Uravan has determined that it is in the best interests of its shareholders to enter into a process of strategic alternatives to pursue and assess other businesses and opportunities outside the mineral exploration industry, including mergers or RTO transactions. Uravan will make further announcements regarding these efforts and progress as they become available.
This press release may contain forward-looking statements, including those describing Uravan’s plans and management’s expectations that a reported outcome or condition will occur. Any statement dealing with future events or conditions necessarily involves inherent risk and uncertainty. Actual results may differ materially from those anticipated by management at the time of writing due to many factors, most of which are beyond the control of Uravan and its management. There can be no assurance that Uravan’s strategic alternatives process will result in the successful completion of any transaction or that Uravan will be able to attract sufficient investment to embark on other business strategies. The opinions presented above regarding Uravan’s prospects in the uranium market are the sole opinions of Uravan and do not constitute investment advice. This press release contains certain forward-looking statements. Readers are cautioned that the foregoing list of risk factors should not be considered exhaustive. These statements speak only as of the date of this press release or as of the date specified in the documents accompanying this press release. The Company assumes no obligation to publicly update or revise forward-looking statements, except as expressly required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Uravan Minerals Inc.
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