Azincourt Uranium (AAZ.V) has announced the final results from its summer exploration program at Patterson Lake North, where it’s currently earning into Fission 3.0’s (FUU.V) property. Hole 19 has encountered some low-grade uranium mineralization as 397ppm was found over approximately half a meter within a six meter interval. Two other holes have encountered ‘highly prospective results’ as strongly anomalous results in combination with pathfinder elements found within the right rocks bode well to find a typical high-grade uranium system in the Athabasca Basin.
According to CEO Ted O’Connor ‘we continue to see the right geology, structure and alteration with excellent geochemistry’ and this is obviously very encouraging for the future and we’re looking forward to see details on a winter drill program.
Additionally, Azincourt has announced it has closed the strategic transaction with Macusani Yellowcake (YEL.V) whereby Macusani is acquiring all of Azincourt’s Peruvian uranium assets for a total consideration of 68.35 million new shares of Macusani. It is Azincourt’s intention to distribute these shares to the shareholders of Azincourt Uranium on a pro rata basis. Based on the current amount of outstanding shares of Azincourt Uranium, shareholders will receive approximately 1.38 Macusani-shares per share of Azincourt they are holding. This means that at the current share price of Macusani Yellowcake of C$0.08, the value of the distribution will be C$0.112 which is 24% higher than the current share price of Azincourt. This means that this distribution will be value-accretive as there’s no way the company’s stake in the Patterson Lake North project will be deemed worthless.
We will be releasing an update report on Azincourt Uranium soon.
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Disclosure: The author holds a long position in Azincourt Uranium. Azincourt also is a sponsor of the website. Please see our disclaimer for current positions.
