- Okapi Resources (OKR) is entering the uranium enrichment sector by becoming a cornerstone shareholder in Australian company Ubaryon
- Okapi will invest $3.1 million in Ubaryon to acquire a 19.9 per cent stake, which could be increased to 21.9 per cent following a planned Ubaryon share buyback
- Ubaryon has developed a uranium enrichment technology to potentially rival Russia’s stranglehold on the industry
- Okapi expects the transaction will be complete by the end of March, subject to completing its due diligence
- OKR shares are up 27.27 per cent to trade at 21 cents at 2:53 pm AEDT
Okapi Resources (OKR) is set to enter the uranium enrichment sector by becoming a cornerstone shareholder in Australian company Ubaryon.
Ubaryon fully owns an enrichment technology that reportedly has “significant” potential to transform the uranium enrichment industry in support of the nuclear fuel cycle.
Okapi will initially acquire a 19.9 per cent interest in Ubaryon through a $3.1 million private placement. However, depending on the outcome of a planned share buyback by Ubaryon, Okapi’s interest could increase to 21.9 per cent.
Okapi considers this a strategic investment as the global enrichment market is reportedly valued at US$6 billion and is important to the nuclear fuel cycle, with only a few facilities operating worldwide. Further, Okapi said the US currently imports 95 per cent of its uranium yellowcake requirements and 70 per cent of its enriched uranium requirements.
Ubaryon’s enrichment technology utilises a novel process that doesn’t require significant temperature or pressure and reduces technical risk and cost.
Enrichment is currently dominated by Rosatom, a Russian nuclear power company, and there’s rising political pressure for utilities to move away from material enriched in Russia.
“We are very excited to become a strategic cornerstone shareholder in Ubaryon at a time that Ubaryon looks to accelerate the development of its world-leading next-generation uranium enrichment technology,” Okapi Managing Director Andrew Ferrier said.
“Our strategic investment in Ubaryon is synergistic with Okapi’s portfolio of North American uranium assets, and we are now uniquely positioned to provide shareholders significant exposure to multiple components of the nuclear fuel cycle including uranium exploration, uranium mining and now uranium enrichment.”
The company expects the transaction to be complete by the end of March, subject to completing its due diligence.
OKR shares soared 27.27 per cent to trade at 21 cents at 2:53 pm AEDT.