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Denison Mines Announces Negotiated Repayment Schedule Of US$16 Million Arbitration Award

Denison Mines Corp. (TSX: DML) shared this morning that it inked a repayment schedule agreement with Uranium Industry related to
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This article was originally published by The Deep Dive

Denison Mines Corp. (TSX: DML) shared this morning that it inked a repayment schedule agreement with Uranium Industry related to the latter’s debt owed to the firm. The negotiation included an initial US$2 million debt repayment received by the firm.

In July 2020, the London Court of International Arbitration ruled in favor of Denison Mines regarding Uranium Industry’s violation of its obligations related to the former’s sale of its Mongolia assets and operations. The court ordered an arbitration award of US$10 million plus 5% annual interest due to Denison Mines.

Considering the arbitration award, interest incurred, and related fees, the total amount due to Denison Mines is US$16 million (including the initial US$2 million payment). The two companies negotiated the repayment schedule of quarterly installments and annual milestone payments until December 31, 2025.

The signed agreement also includes conditions in favor of Denison Mines due to the deferral of the arbitration award payment, including restricting Uranium Industry to take on additional debt.

Denison Mines Corp. last traded at $1.80 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Denison Mines Announces Negotiated Repayment Schedule Of US$16 Million Arbitration Award appeared first on the deep dive.



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Energy & Critical Metals

Terra Uranium Buys Into Two CanAlaska Uranium Projects in the Athabasca Basin

Terra Uranium has Staged Option to Earn up to 80% Interest in McTavish and Waterbury East Projects, subject to Resource definitionFocus on High-Grade Eastern…

Terra Uranium has Staged Option to Earn up to 80% Interest in McTavish and Waterbury East Projects, subject to Resource definition

Focus on High-Grade Eastern Athabasca Uranium Discovery

Vancouver, British Columbia–(Newsfile Corp. – January 19, 2022) – CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) (“CanAlaska” or the “Company”) is pleased to announce it has entered into Purchase Option Agreements (“POA”) with Terra Uranium Limited (“Terra”), an Australian public limited corporation, and Terra’s wholly-owned Canadian subsidiary Terra Uranium Canada Limited, to allow Terra to earn up to an 80% interest in CanAlaska’s 100%-owned Waterbury East and McTavish projects. These projects total 4,202.21 hectares in the Eastern Athabasca Basin in Saskatchewan, Canada (the “Projects”) (Figure 1).

Figure 1: McTavish and Waterbury East Project Locations

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2864/110736_36f00999b477fa03_001full.jpg

Waterbury East and McTavish Projects

Terra may earn up to an 80% interest in each of the Waterbury East and McTavish projects by undertaking work, milestone payments to CanAlaska and resource definition in three defined earn-in stages on each project as set out below:

  • Terra may earn an initial 40% interest (“40% Option”) in each of the projects by paying the Company AUD$37,500 cash per project and issuing 9% worth of ordinary shares in Terra’s capital structure as at listing on the Australian Securities Exchange (“ASX”) by March 31, 2022 per project.
  • Terra may earn an additional 20% interest (“60% Option”) in each of the projects by paying a further AUD$200,000 per project and incurring AUD$2,500,000 in exploration expenditures within 18 months of the ASX listing date per project.
  • Terra may earn an additional 20% interest (“80% Option”) in the projects by delivering and filing a JORC compliant resource of at least 30,000,000 pounds U3O8 on any of the Waterbury East or McTavish claims, and granting to the Company a 2.25% net smelter returns (NSR) royalty on all products derived from any of the claims, within 36 months of the ASX listing date.

CanAlaska will be Operator of the projects through the 60% Option threshold and charge an operator fee to Terra.

The POA envisages conversion to a Joint Venture. Under the terms of the POA, after successful completion of either of the 40% Option or 60% Option stages of the agreement, and where Terra elects to not enter the next respective option stage as applicable, or on successful completion of the 80% Option stage, a joint venture will be formed and the parties will co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula. If either party dilutes to a 10% interest, the diluting party will automatically forfeit its interest in the respective project and in lieu thereof will be granted a 2.0% net smelter returns (NSR) royalty on the respective project. If the 80% Option NSR of 2.25% had been previously granted to CanAlaska, CanAlaska would not be entitled to this 2.0% NSR provision on dilution to 10% interest.

An area of mutual interest has been established that extends two kilometres from the boundary of the claims.

Under the terms of the POA, if the Conditions Precedent are not met or if Terra elects to terminate prior to exercise of the 40% Option, a break fee of AUD$12,500 per project is due to CanAlaska.

First Programs

The parties have established a Joint Technical Operating Committee (“JTOC”) under the terms of the POA to discuss exploration and development strategies, review and comment on programs and budgets submitted by the Operator, review the progress and results of activities conducted under the current programs and to discuss other issues in respect to the properties. The final binding decision with respect to establishing Programs to be carried out by the Operator (including any changes or amendments to Programs) shall be made by Terra Uranium. The preliminary work programs and budgets for each project have been laid out for the next 2 years. Once the 40% Option threshold has been met, it is anticipated the first exploration programs under the POA with Terra will be conducted in early 2022.

About Terra Uranium Ltd and Terra Uranium Canada Limited

Terra Uranium Ltd is an Australian public limited corporation that is in the process of undergoing an initial public offering and concurrent listing on the Australian Securities Exchange (“ASX”). The POA agreements are subject to a number of Conditions Precedent, including that Terra has received conditional approval from the ASX to be listed on the ASX and raising sufficient funds to carry out the programs

Terra Uranium Canada Limited is a wholly-owned Canadian subsidiary of Terra Uranium Ltd, incorporated in Saskatchewan, Canada.

CanAlaska CEO, Cory Belyk, comments, “Completion of the definitive agreements with Terra Uranium represents significant funding for exploration on the highly prospective Waterbury East and McTavish projects in the Eastern Athabasca Basin, without dilution of CanAlaska shareholders interest in our core properties. We look forward to working closely with Terra and its management team toward a common goal of tier 1 uranium deposit discovery.”

Other News

The Company has just commenced drilling on its 100% owned Waterbury South project and is currently undertaking a detailed Stepwise Moving Loop Time Domain Electromagnetic (TDEM) Survey on its West McArthur project, in advance of the planned summer drill program.

About CanAlaska Uranium

CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) holds interests in approximately 300,000 hectares (750,000 acres), in Canada’s Athabasca Basin – the “Saudi Arabia of Uranium.” CanAlaska’s strategic holdings have attracted major international mining companies. CanAlaska is currently working with Cameco and Denison at two of the Company’s properties in the Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the world’s richest uranium district. The Company also holds properties prospective for nickel, copper, gold and diamonds. For further information visit www.canalaska.com.

The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska’s Vice President, Exploration.

On behalf of the Board of Directors
“Peter Dasler”
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd. 

Contacts:

Cory Belyk, Executive VP and CEO
Tel: +1.604.688.3211 x 306
Email: [email protected]

Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email: [email protected] 

Neither 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.

Forward-looking information

All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. Readers should not place undue reliance on forward-looking statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/110736

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Precious Metals

Cleantech Boom 2.0: Does Mining Have a Place?

Investment in mining and its resources is an integral part of cleantech as green initiatives to make the energy transition possible.
The post Cleantech…

The climate crisis is back at the forefront of political discussions following COP26 and several initiatives aiming to reduce carbon emissions have been announced. Decarbonising our economy is a difficult but urgent task and continued technological innovation will help. Although new technologies will aid the reduction of carbon emissions, the sheer volume of raw materials required to innovate are significant. Is investment in decarbonisation a reasonable excuse to further dig up the planet?

Defining cleantech

‘Cleantech’ (often used interchangeably with ‘climatetech’) refers to innovative solutions to address the challenges of climate change. These solutions help to achieve the goals of environmental sustainability by storing or generating energy with limited carbon emissions, thus assisting decarbonisation efforts. Investors are recognising the importance and potential longevity of this industry and investment is pouring in.

Electric vehicles (EVs) are one of the leading technologies required to reduce the emissions of the transport industry, but the transition to renewables and EVs will require an abundance of materials and extraction rates are rising.

Investment floods in

While there was a boom in cleantech investment in 2005, it began to be seen as a risky choice and interest dwindled due to investment failures in areas such as biofuels and solar. The investment bubble then burst. However, the urgency to reach net-zero has reignited interest in cleantech and, as innovations in areas such as agriculture and batteries are announced, investors are scrambling for their share. This investment boom is spurring an increase in the number of start-ups, driving the much-needed innovation required to help solve the climate crisis.

Mining activity is on the rise

To deal with the growing number of clean technologies, mining extraction rates are also growing. Various metals and minerals are required in the transition to decarbonisation and minerals such as cobalt and lithium are the building blocks of cleantech. As the world attempts to reach net zero, demand for critical minerals will skyrocket.

According to a 2020 World Bank Report, a low-carbon future will be more mineral intensive as clean energy requires more materials than fossil-fuel-based technologies. The International Energy Agency estimates that EVs require six times the amount of minerals as a typical car and nine times more minerals are required for wind energy plants than gas-fired equivalents. However, ESG concerns around the traditional heavy industry are so far causing investors to look the other way.

ESG in mining

There are several ESG concerns tied to mining, notably, the environmental degradation caused by the erection and operation of mines to meet the growing demand for materials. Social and governance concerns are becoming increasingly apparent and stories of dangerous working conditions, artisanal miners and child labour are common. ESG funds often exclude mining as a result. To counteract this, the mining sector is beginning to show signs that it is taking ESG seriously. A leading example is Glencore, who GlobalData classifies as a climate leader. Glencore has pledged to reach net-zero carbon emissions by 2050. Its carbon reduction strategies include the electrification of mining fleets, which has been pioneered by companies such as Newmont and Boliden.

As investors are increasingly becoming more climate aware, mining companies are recognising the potential upsides of taking ESG seriously. This will drive companies to innovate to establish how they can decouple their growth from emissions.

Investors need to think about the future

A boom in green investment has begun again but shifting investment away from mining will undermine the green energy transition. Mining companies should further implement ESG principles and demonstrate that they are serious about ESG. Green funds should also include these mines in their portfolios instead of blacklisting them. Without the mining industry, the energy transition is not possible and investors should stop shying away from this heavy industry by focusing all their investment on renewable technologies. Currently, the production of these technologies cannot be achieved without mining and the resources it produces. Investors should instead use the power they possess to exert pressure on mining companies to consider ESG strategies. They would then need to prove that they are more sustainable and innovate their techniques to achieve this. Therefore, the boom in green investment can be used to tidy up the mining industry and keep the cleantech bubble afloat.

The post Cleantech boom 2.0: Does mining have a place? appeared first on Mining Technology.

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Be Ready To Take Advantage of a Dip in Lucid Stock

If you’ve been waiting to buy Lucid Group (NASDAQ:LCID) on the cheap, this may be your chance. LCID stock currently sits 32% below its high of $57.75,…

If you’ve been waiting to buy Lucid Group (NASDAQ:LCID) on the cheap, this may be your chance. LCID stock currently sits 32% below its high of $57.75, made in mid-November. Shares have fallen nearly 14% in the past week alone as the company approaches the lockup expiration for legacy shareholders.

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Following the completion of its successful blank-check merger in late July with special purpose acquisition company Churchill Capital Corp IV, LCID stock shot up as much as 129%. This isn’t all that surprising when you consider what a hot commodity electric vehicle stocks were at the time.

Today, shares sit about 55% above their public debut, having been caught up in a broader sell-off in the sector and in anticipation of some volatile trading around the end of the lockup period. If LCID stock falls to $35 or lower in the coming days, it may be time to pounce.

What Does the Lockup Expiration Mean for LCID Stock?

The lockup period for existing Lucid shareholders expires on Jan. 19, which marks 180 days from the closing of the SPAC merger with Churchill. That means those shareholders are free to dump their stock or trim their positions.

When the reverse merger closed, there were 1.19 billion shares of LCID stock held by legacy shareholders, according to a filing submitted to the Securities and Exchange Commission. The largest shareholder, by far, is the Saudi Public Investment Fund. It holds a 67.2% stake in Lucid.

If we see a huge amount of shares hit the market tomorrow, it’s a good indication that legacy shareholders think LCID stock is a little overvalued right now.

The first private investment as public equity (PIPE) lockup expiration for LCID stock occurred on Sept. 1. In the week preceding the event, LCID stock fell 8.5%. It fell another 11% on Sept. 1. Three months later, though, the share price had more than doubled.

Lucid at a Glance

Lucid CEO Peter Rawlinson was best known (before his Lucid days) as the vehicle engineer for the Tesla (NASDAQ:TSLA) Model S. Tesla, which delivered more than 900,000 vehicles in 2021, now has a market cap of more than $1 trillion. It’s no wonder Lucid devotees dream of similar success for the EV startup.

Compared to Tesla, Lucid is a baby. The first vehicle deliveries of the Lucid Air sedan were made on Oct. 30. However, the vehicle was named the MotorTrend 2022 Car of the Year and the company said it had more than 17000 reservations as of Nov. 15.

Lucid plans to produce 20,000 vehicles this year at its plant in Arizona. Currently, the factory has a top capacity of 34,000 vehicles, according to Lucid. But an expansion project that’s already underway should allow the company to produce 90,000 vehicles a year by the end of 2023. What’s more, management has plans to open plants in China and the Middle East.

Lucid’s Nov. 15 earnings report was its first as a publicly traded company. Lucid reported a Q3 loss of 42 cents per share versus analysts’ expectations of a loss of 25 cents per share. But LCID stock jumped 24% on the day because investors were impressed with the company’s growth projections.

The Bottom Line on LCID Stock

Undoubtedly, Tesla is the big brother in this relationship. Elon Musk’s company will be a formidable competitor.

That’s one reason why Redburn analyst Charles Coldicott initiated coverage of LCID stock with a price target of $39 and a “neutral” rating.  He says Lucid should win a “fairly moderate” market share in the U.S., but warns it will have more difficulties in the global market where China has a greater advantage.

Personally, I think the $39 price target is low. If we see LCID stock dip to $35 or below after the lockup period ends tomorrow, it could present an excellent entry point.

On the date of publication, Patrick Sanders was long TSLA stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of the investment advice section at U.S. News & World Report. Follow him on Twitter at @1patricksanders.

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