Uranium American Resources is making a strategic pivot from its previous gold-silver focus in Nevada, in the United States, under its old Tonogold Resources shingle, with the rebrand reflecting the company’s move towards greener uranium and vanadium.
The shift follows the company’s move last year to acquire three low-risk west-central US projects known for their historic uranium and vanadium production that are also close to relevant mines and processing plants.
Uranium American’s name change is effective immediately, although the company will continue to trade under its former name and ticker until the US regulatory agency, FINRA, completes the update.
Uranium American Resources chief executive officer William Hunter said: "We’re pleased to announce our name change and continue to move this transaction forward. With the increased focus on producing ‘clean’ energy, we believe our current strategy uniquely positions Uranium American Resources as a leader in the US nuclear industry. We continue to discuss partnerships and transactions with other leaders in the industry and look forward to providing updates shortly.”
The new uranium and vanadium projects were acquired through an agreement with JAG Minerals. The deal will allow Uranium American to accelerate the development and exploration of the Marysvale hard-rock uranium-vanadium mine in Utah, the SKY uranium roll-front project in Wyoming and 19 historic high-grade vanadium-uranium mines in the Stateline group of projects in Montrose County, Colorado and San Juan County, Utah.
The company advised in May last year that it had entered into a binding share purchase agreement to acquire JAG Minerals’ shares. JAG Minerals held a 100pc interest in JAG Minerals USA Inc.
Uranium American will pay US$8.5 million (A$13,570,471) for the purchase, comprising US$6.5m (A$ 10,377,419) in JAG shares at an issue price of 4 cents per share plus a further US$2m (A$3,193,052) in cash paid to JAG shareholders at the date of closing.
Historic resource estimates at the Marysvale project point to a potential 2.9 million pounds (1.31 million kilograms) of uranium at depths of about 90m to 240m.
The project’s blanket-type supergene style of mineralisation along a major fault zone indicates a strong potential for resource expansion. Abundant historical data, including about 115 drill holes, will also help the company’s exploration efforts.
During its acquisition, the Sky uranium project in Fremont County, Wyoming, was expanded from its 57 patented mining claims when the company secured two additional State leases, covering 520 hectares.
The greater Sky property was extensively drilled in the late 1960s through to the early 1980s. A total of 161 reverse circulation holes in two drill campaigns, totalling about 31,320m of drilling, defined the exploration trend at an average 60m spacing.
Pathfinder Mines generated an historic resource estimate in 1980, totalling 350,000 tons (317,514 tonnes) at a grade of 0.117 per cent uranium oxide, for a total 822,000 pounds (372,852kg) at 0.03pc uranium oxide equivalent and 0.91m thickness cut-off.
The resource was updated in 2007 by Strathmore Minerals Corporation to an inferred 54,496 pounds (24,719kg) of uranium oxide and an indicated 948,098 pounds (430,050kg) of uranium oxide at 0.03pc uranium oxide equivalent and 0.91m thickness cutoff.
At the Stateline project in Colorado, a sampling program completed in May 2024 produced encouraging results, with uranium and vanadium mineralisation exceeding 1pc for both elements, with scintillometer readings as high as 45,200 counts per second.
The project encloses 7.12 square kilometres near Energy Fuels’ La Sal complex and includes at least 19 historic mines, many containing vanadium grades ranking higher than most typical North American deposits. It was tested by about 30 drillholes.
It contains highly prospective geology, as confirmed by historical mining activities and supported by comprehensive existing datasets, which are expected to enable the company to fast-track its resource updates and mining approvals.
Management says Uranium American Resources’ makeover has been well-received by its shareholders, with more than 80pc of the company’s historical convertible noteholders electing to convert their notes into equity at US10c (A16c) per share.
The rebranding reflects a major shift in the company’s focus to uranium and vanadium assets, bringing it into line with the global increase in demand for clean energy solutions. It aims to position Uranium American Resources as a potential key player in the American nuclear energy sector.
The market has responded favourably to the company’s rebranding and commodity direction, with the share price reflecting strong investor confidence in Uranium American Resources’ new vision and growth potential.
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By Doug Bright
