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DALLAS/RENO - Eagle Energy Metals Corp. plans to become the first domestic uranium resource exploration company with Small Modular Reactor (SMR) technology to go public through a merger with Spring Valley Acquisition Corp. II (NASDAQ:SVII), according to a press release statement issued Thursday. SVII shares are currently trading at $12, matching their 52-week high, with notably low price volatility according to InvestingPro data.
The transaction values Eagle at a pro-forma equity value of $312 million and is expected to close in late 2025, subject to regulatory and stockholder approvals. Upon completion, Eagle will trade on Nasdaq under the ticker symbol "NUCL." Based on InvestingPro analysis, SVII is currently trading above its Fair Value, with a P/E ratio of 47.3 and a market capitalization of $118.56 million. Get access to 6 more exclusive ProTips and comprehensive financial metrics with InvestingPro.
Eagle’s primary asset is the Aurora Uranium Project, which the company describes as containing over 50 million pounds of near-surface uranium resources based on more than 500 drill holes. The company also holds the adjacent Cordex deposit, which has had over 100 holes drilled and is expected to add to the overall resource inventory.
The company plans to commence a pre-feasibility study at Aurora in 2026. Eagle also owns proprietary SMR technology, positioning it for distributed nuclear energy deployment.
A fundamental institutional investor has committed approximately $30 million in Series A Convertible Preferred Stock at closing. The transaction includes no minimum cash condition.
Mark Mukhija, CEO of Eagle, stated that the business combination comes at a pivotal time for the nuclear energy sector as electricity demand accelerates amid a structural uranium deficit in the market.
Spring Valley’s team previously brought NuScale Power public. Chris Sorrells, Chairman and CEO of SVII, noted that Eagle is developing a uranium asset with a clear pathway to production that could help restore U.S. leadership in the nuclear industry.
According to the press release, U.S. utilities purchased more than 50 million pounds of uranium in 2023, with less than 5% sourced domestically and over 95% from abroad. InvestingPro data indicates SVII faces some financial challenges, including weak gross profit margins and short-term obligations exceeding liquid assets, with a current ratio of 0.21. Unlock detailed financial health analysis and real-time alerts with an InvestingPro subscription.
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