Azincourt Uranium (AAZ.V) has announced it has received the newly issued shares of Macusani Yellowcake (YEL.V) and it plans to distribute the shares to its current shareholders. As you know, Azincourt sold its Peruvian property to Macusani for a consideration of 68.35M shares of Macusani. After deducting the fee payable to Haywood Securities (3.335M shares), Azincourt will distribute the remaining 65 million shares to its shareholders.
Based on the current amount of outstanding shares, this means that shareholders of Azincourt Uranium will get 1.31415 shares of Macusani per Azincourt share. Keep in mind that there’s a 4 month holding period on those Macusani-shares, which will expire on January 5th. Based on the current share price of Macusani, the distribution has a value of C$0.105 per share of Azincourt, which means that Azincourt is trading at a slight premium to the distribution rate. This also means that the market is currently valuing its stake in the Patterson Lake North project at C$0.015/share, which is obviously ridiculously low.
Disclosure: The author holds a long position in Azincourt Uranium. Azincourt is a sponsor of the website. Please see our disclaimer for current positions.
