CALGARY, AB, Sept. 7, 2021 /CNW/ - Uravan Minerals Inc.
(TSXV: UVN) ("Uravan") has been active as a junior uranium
exploration company (relying on sustainable uranium prices, which
almost never exist) since 2003. However, in 2011, following the
earthquake and tsunami that devasted the Fukushima Daiichi nuclear
power plant in Japan, the spot and
long-term uranium prices have been in a protracted decline. In
2015, production cuts from most uranium miners were implemented to
help revive the weak global uranium market prices.
Fast forward to 2021, a decade lost to declining spot prices of
natural uranium, the weak-demand story persists. We believe
that the recent upward price movement in the uranium spot market,
closing at a high of $38.70 per pound
U3O8 on September
3rd, has been orchestrated predominately by
non-user buying in the very thin uranium commodity exchanges, and
is not supported by fundamentals. Although this uranium
buying activity is considered positive to the investor, this upward
movement in spot prices is considered ephemeral due to the lack of
real demand between uranium producer and nuclear power user (i.e.,
uranium is not a commodity), plus advances in enrichment
technologies allows nuclea r power utilities to avoid these
markets.
Therefore, due to Uravan's current financial constraints,
relatively weak spot natural uranium prices and lack of access to
financial markets or other sources of financing, Uravan has
determined it is in the best interest of its shareholders to enter
a strategic alternatives process to pursue and evaluate other
businesses and opportunities outside the mineral exploration
industry, including mergers or RTO transactions. Uravan will make
further announcements with respect to these efforts and progress as
they become available.
Cautionary Statement
This press release may contain forward looking statements
including those describing Uravan's plans and the expectations of
management that a stated result or condition will occur. Any
statement addressing future events or conditions necessarily
involves inherent risk and uncertainty. Actual results can differ
materially from those anticipated by management at the time of
writing due to many factors, much 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 conclusion of a transaction or that Uravan will be able
to attract sufficient investment to embark on any other business
strategies. The views presented above regarding Uravan's
outlook on the uranium market are Uravan's views alone and do not
constitute investment advice. This news release contains
forward-looking statements pertaining. Readers are cautioned
that the foregoing list of risk factors should not be construed as
exhaustive. These statements speak only as of the date of this
release or as of the date specified in the documents accompanying
this release. The Corporation undertakes no obligation to publicly
update or revise any forward-looking statements except as expressly
required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Uravan Minerals Inc.