Global Uranium and Enrichment Limited (GUE) is set to acquire 100% of the Pine Ridge Uranium Project in Wyoming’s Powder River Basin through a joint venture with Snow Lake Energy (LITM). The acquisition, valued at US$22.5 million, will be paid in three annual installments. Snow Lake will become a cornerstone investor in GUE, investing A$5.6 million for a 19.99% stake, alongside a $9.0 million placement.
The Pine Ridge Project is an advanced In-Situ Recovery (ISR) uranium project located in a leading North American uranium jurisdiction and is primed for accelerated development. The project includes a substantial initial Exploration Target, with over 1,200 holes drilled identifying 140 miles of redox fronts. Cameco’s Smith Ranch Uranium Mill, with a licensed capacity of 5.5 million pounds U3O8 per annum, is located 15km from Pine Ridge, which is surrounded by other global-scale uranium projects. Drilling is expected to commence immediately after the acquisition.
The JV commits to a minimum of US$10 million in exploration expenditure over three years. The Pine Ridge Exploration Target ranges from 24.4 to 51.3 Mlbs U3O8 at an average grade of 0.031% to 0.040% U3O8. ISR mining offers advantages over conventional methods, including lower environmental impact and cost efficiency. Wyoming’s regulatory environment supports uranium production.
Snow Lake CEO Frank Wheatley will join Global Uranium’s board. Funds raised from the placement will finance the Pine Ridge acquisition, accelerated exploration, and general working capital. The acquisition positions Global Uranium in the heart of a significant uranium district. The location of the Pine Ridge Project in the Powder River Basin positions it amongst existing uranium processing facilities providing a clear pathway to production, enhancing project viability and reducing development lead times. The company has commenced a capital raising to raise up to A$9.0 million at an issue price of $0.065 per share via a conditional share placement.
