Tag: Labrador Uranium Inc.

Consolidated Uranium (CUR) and Labrador Uranium (LUR) (Private, Not Rated) have closed the previously announced spin-out of LUR as anticipated. Pursuant to the close and as of 12:01am on Feb 22/22, CUR has transferred ownership of the Moran Lake project to LUR in exchange for 16M shares, which will be distributed to CUR shareholders of record. In our view, the spin-out of LUR creates a unique uranium exploration vehicle in Labrador. LUR begins life with an existing resource base, massive land package and considerable upside potential. While we had already accounted for the removal of Moran Lake from CUR’s model, we are reducing our target price for CUR to C$4.15 to account for recent changes in its working capital.

Consolidated Uranium (CUR) provided an update regarding recent developments of its proposed spin-out of Labrador Uranium (LUR) (Private, Not Rated). LUR has expanded its land holdings around various projects and bolstered its technical team, which should help improve chances for exploration success. We note these new additions come in time for aggressive summer 2022 work programs at its Moran Lake, CMB and Notakwanon projects. The CUR shareholder vote to approve the spinout is scheduled for 3-Feb-22, after which we would expect the deal to close by the end of Feb/22 and LUR to list on the CSE. In our view, the spin-out creates a unique uranium exploration vehicle in Labrador. LUR begins life with an existing resource base, massive land package and considerable upside potential. Its large project portfolio is situated in a bona-fide uranium camp that extends for 260km x 75km. Moreover, Labrador is an excellent mining jurisdiction, ranked 8th for mining attractiveness by Fraser Institute.