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VANCOUVER - NexGen Energy Ltd. (TSX:NXE) (NYSE:NXE) (ASX:NXG), a uranium development company with a market capitalization of $4.05 billion, announced Thursday it has acquired Rio Tinto Exploration Canada Inc.’s 10% production carried interest over 39 mineral claims in the Southwest Athabasca Basin, including those hosting the Patterson Corridor East discovery. According to InvestingPro analysis, NexGen has demonstrated strong returns over the past five years, though current valuations suggest the stock may be trading above its Fair Value.
The acquisition means NexGen now owns 100% of its entire portfolio of projects, which include Rook I (location of the Arrow and PCE deposits), SW1 and SW3. The company exercised its Right of First Refusal to acquire the interest, matching a cash payment offered to Rio Tinto, though the financial terms remain confidential under contractual obligations. InvestingPro data shows NexGen maintains a strong balance sheet with more cash than debt, positioning it well for future development activities.
The production carried interest had entitled Rio Tinto to a 10% undivided interest in future production from the subject claims, carried through to the commencement of commercial production. The arrangement was established before NexGen acquired the land package in 2012.
Under the previous agreement, NexGen would have been entitled to recover 10% of all prior costs from 75% of Rio Tinto’s share of production once commercial operations began, after which a joint venture would have formed.
"Consolidating our portfolio at PCE and surrounding area to match our 100% ownership in our Arrow deposit is entirely in line with our strategic objective of becoming the future leader in uranium production worldwide," said Leigh Curyer, Chief Executive Officer of NexGen.
The company’s flagship Rook I Project is being developed in northern Saskatchewan, Canada.
This article is based on a press release statement from NexGen Energy Ltd. While analysts don’t expect profitability this year, investors can access comprehensive analysis and 8 additional ProTips about NexGen through InvestingPro’s detailed research reports, part of its coverage of over 1,400 US-listed companies.
In other recent news, NexGen Energy Ltd. announced that all nine nominees were elected to its Board of Directors, with Sharon Birkett joining as a new director. Birkett, who brings extensive experience as a Chief Financial Officer, will serve as Chair of the Audit Committee. Saskatchewan’s Ministry of Environment has approved NexGen Energy’s 2025 Site Program at the Rook I Property, which includes the construction of a temporary exploration airstrip and expansion of camp facilities. Desjardins has initiated coverage on NexGen Energy with a Buy rating and a price target of C$13.50, highlighting the Rook I Arrow deposit as a significant uranium resource. Analyst Bryce Adams from Desjardins expressed confidence in NexGen’s potential role in the nuclear fuel supply. Meanwhile, IsoEnergy Ltd. announced its common shares will be listed on the NYSE American, set to begin trading in May 2025. This listing will see IsoEnergy’s shares delisted from the OTCQX without requiring action from shareholders. IsoEnergy is advancing its Larocque East project and maintains a portfolio of uranium and vanadium mines in Utah.
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