Russia takes aim at US nuclear power by throttling uranium
Limits creates potential supply risks to utilities operating American reactors that generate almost a fifth of the country’s electricity.
Crosshair Exploration & Mining Corp. (TSX:CXX) has launched a US$12.85 million hostile bid for US uranium assets owned by Australian American Mining Corporation Limited (ASX:AIW).
Crosshair has written directly to AusAm shareholders to outline their proposal and call on shareholders to support Crosshair’s efforts to “unlock the value in AusAm.”
Under the proposal, AusAm would receive consideration of US$12.85 million in Crosshair shares, in return for AusAm’s uranium assets in Nevada, Texas and New Mexico.
Crosshair said in a press release that the board of AusAm “has failed to adequately capitalize on the exploration and development of its assets,” and “does not have a realistic plan to halt the value destruction being experienced, despite demanding shareholders issue them options and pay them substantial salaries.”
Crosshair Executive Chair Mark Morabito urged shareholders to accept the $12.85 million deal offered by Crosshair, which he said is above the value of AusAm’s estimated $9 million market cap:
“Our proposal allows AusAm to immediately benefit from a significant premium in the value of their assets, whilst allowing Crosshair to accelerate the development of the uranium assets by applying our proven expertise, based here in North America, to advancing the assets,” said Morabito.”AusAm can either benefit from the upside as we develop the Uranium assets, or use the greater financial resources to pursue their other prospective projects.”
AusAm has yet to respond.
MINING.com reported last Friday on world number one uranium producer Cameco’s $527 million cash offer to shareholders of Hathor Exploration, after talks with the board of the junior explorer failed to result in a deal. Hathor responded Monday by urging its shareholders to “take no action” until it has had an opportunity to review the bid. Hathor owns the Roughrider deposit in Saskatchewan close to Cameco’s Rabbit Lake mill. The deposit is estimated to contain indicated and inferred resources of about 17.2 million and 40.7 million pounds of uranium.
