Junior explorer Everest Metals Corporation (ASX:EMC) has confirmed it will own a 22.8% stake in Cobold Metals when the latter lists on the ASX, intended for Q4 of CY2024.
Boasted as its flagship will be the Mukinbudin Uranium Project in WA which, currently, is in the hands of EMC.
Cobold and Everest have struck a deal that sees Cobold picking up Mukinbudin for its IPO later this year with EMC to retain an indicative 22.8% interest in the new listing. EMC expects that to be worth $2.6M.
Everest on Tuesday asserted Cobold Metals’ board, advisors and current shareholders “were instrumental in the success and growth of Alligator Energy.” Alligator is one microcap a particular beneficiary of recent upside in uranium prices; its returns are +45% YoY.
Everest wrote on Tuesday that with the Mukinbudin project in hand, it was ‘in the right place at the right time.’ The company also pointed out – for the uninitiated – that uranium is a clean fuel feedstock.
The right timing is in part, no doubt, a reference to the LNP’s latest election strategy, which looks a lot like trying to start a culture war around nuclear power.
While it’s hard to deny that Australia’s lack of working nuclear power makes it something of a laggard, and that nuclear power can be cleaner than hydrocarbon-based generation, the country’s vast expanses and lower relative population do pose massive problems for nuclear economics.
That doesn’t stop us from selling it to allies, however.
“This transaction allows EMC to continue to focus on its core gold and critical mineral assets whilst giving shareholders maximum upside to its uranium strategy,” Everest CEO Mark Caruso said.
“The Uranium market outlook continues to be very strong with nuclear demand expected to continue outpacing supply over the mid-term to enhance long-term energy security and attainment of net-zero goals.”
EMC last traded at 12cps.