Category: Energy

Categories
Base Metals Energy

URANIUM | Denison Announces Filing of Technical Report for Wheeler River PFS

TORONTO, Oct. 30, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT) today announces that it filed a technical report under Canadian Securities Administrators’ National Instrument 43-101 Standard of Disclosure for Mineral Projects for its 90% owned Wheeler River Project in Saskatchewantitled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 with an effective date of September 24, 2018.

View PDF version.

The technical report is posted on the Company’s website at www.denisonmines.com and is available under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.  This report supports the disclosure made by the Company in its news release dated September 24, 2018 (the “News Release”) and there are no material differences contained in the technical report from the information previously disclosed in the News Release.

As outlined in the News Release, the PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits.  The high-grade Phoenix deposit is designed as an In-Situ Recovery (“ISR”) mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River.  The Gryphon deposit is designed as an underground mining operation, utilizing a conventional long hole mining approach with processing of mine production assumed at Denison’s 22.5% owned McClean Lake mill.

Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The base-case economic analysis assumes uranium sales are made at UxC Consulting Company, LLC’s (“UxC”) annual estimated spot price for mine production from the Phoenix deposit (from ~US$29/lb U3O8to US$45/lb U3O8), and a fixed price for mine production from the Gryphon deposit (US$50/lb U3O8).

Using the same price assumed for the project’s 2016 Preliminary Economic Assessment (“2016 PEA”), a fixed uranium price of US$44/lb U3O8 (“PEA Reference Case”), the PFS produces a combined pre-tax project NPV of $1.41 billion – representing roughly 275% of the $513 million pre-tax project NPV estimated in the 2016 PEA.

Pre-Feasibility Study Highlights

  • Phoenix delivers exceptional operating costs and manageable initial capex with ISR

Mine life

10 years (6.0 million lbs U3O8 per year on average)

Probable reserves(1)

59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8)

Average cash operating costs

$4.33 (US$3.33) per lb U3O8

Initial capital costs

$322.5 million

Base case pre-tax IRR(2)

43.3%

Base case pre-tax NPV8%(2)

$930.4 million

Base case price assumption

UxC spot price(3) (from ~US$29 to US$45/lb U3O8)

Operating profit margin(4)

89.0% at US$29/lb U3O8

All-in cost(5)

$11.57 (US$8.90) per lb U3O8

(1)

See below for additional information regarding Probable reserves;

(2)

NPV and IRR are calculated to the start of pre-production activities for the Phoenix operation in 2021;

(3)

Spot price forecast is based on “Composite Midpoint” scenario from UxC’s Q3’2018 Uranium Market Outlook (“UMO”) and is stated in constant (not-inflated) dollars;

(4)

Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue.  Operating costs exclude all royalties, surcharges and income taxes;

(5)

All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.

  • Gryphon leverages existing infrastructure and provides additional low-cost production

Mine life

6.5 years (7.6 million lbs U3O8 per year on average)

Probable reserves(1)

49.7M lbs U3O8 (1,257,000 tonnes at 1.8% U3O8)

Average cash operating costs

$15.21 (US$11.70) per lb U3O8

Initial capital costs

$623.1 million

Base case pre-tax IRR(2)

23.2%

Base case pre-tax NPV8%(2)

$560.6 million

Base case price assumption

US$50 per pound U3O8

Operating profit margin(3)

77.0% at US$50/lb U3O8

All-in cost(4)

$29.67 (US$22.82) per lb U3O8

(1)

See below for additional information regarding Probable reserves;

(2)

NPV and IRR are calculated to the start of pre-production activities for the Gryphon operation in 2026;

(3)

Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue.  Operating costs exclude all royalties, surcharges and income taxes; 

(4)

All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.

  • Selection of ISR mining method for high-grade Phoenix deposit – Following the completion of the 2016 PEA, the Company evaluated 32 alternate mining methods to replace the high-cost Jet Bore Mining System (“JBS”) assumed for the Phoenix deposit in the 2016 PEA. The suitability of ISR mining for Phoenix has been confirmed by significant work completed in the field and laboratory – including drill hole injection, permeability, metallurgical leach, agitation, and column tests. Results demonstrate high rates of recovery in both extraction (+90%) and processing (98.5%) following a simplified flow sheet that precipitates uranium directly from the uranium bearing solution (“UBS”), without the added costs associated with ion exchange or solvent extraction circuits.
  • Novel application of established mining technologies – Given the unique geological setting of the Phoenix deposit, straddling the sub-Athabasca unconformity in permeable ground, the project development team has combined the use of existing and proven technologies from ISR mining, ground freezing, and horizontal directional drilling to create an innovative model for in situ uranium extraction in the AthabascaBasin. While each of the technologies are well established, the combination of technologies results in a novel mining approach applicable only to deposits occurring in a similar geological setting to Phoenix – which now represents the first deposit identified for ISR mining in the Athabasca Basin.
  • Environmental advantages of ISR mining at Phoenix – The Company’s evaluation of the ISR mining method for Phoenix has also identified several significant environmental and permitting advantages, namely the absence of tailings generation, the potential for no water discharge to surface water bodies, and the potential to use the existing Provincial power grid to operate on a near zero carbon emissions basis. In addition, the use of a freeze wall, to encapsulate the ore zone and contain the mining solution used in an ISR operation, eliminates common environmental concerns associated with ISR mining and facilitates a controlled reclamation of the site. Taken together, the Phoenix operation has the potential to be one of the most environmentally friendly mining operations in the world. Owing largely to these benefits, consultation with regulatory agencies and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.

The PFS has been completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (CIM) standards and best practices, as well as other standards such as the AACE Cost Estimation Standards.

Wheeler River Project

The Wheeler River project is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada.  The project is situated in close proximity to important regional infrastructure, including the Provincial electrical transmission grid and an all-season Provincial highway.  Since Denison became the operator of the project in 2004, two high-grade uranium deposits have been discovered and now account for combined Mineral Reserves and Mineral Resources (100% Basis) as follows:

  • Probable Mineral Reserves of 109.4 million pounds U3O8

Deposit

Classification

Tonnes

Grade

Lbs U3O8

Phoenix

Probable

141,000

19.1%

59.7 million

Gryphon

Probable

1,257,000

1.8%

49.7 million

Total

Probable

1,398,000

3.5%

109.4 million

Notes:

(1)

Reserve statement is as of September 24, 2018;

(2)

CIM definitions (2014) were followed for classification of mineral reserves;

(3)

Mineral reserves for the Phoenix deposit are reported at the mineral resource cut-off grade of 0.8% U3O8. The mineral reserves are based on the block model generated for the May 28, 2014 mineral resource estimate. A mining recovery factor of 85% has been applied to the mineral resource above the cut-off grade;

(4)

Mineral reserves for the Gryphon deposit are estimated at a cut-off grade of 0.58% U3O8 using a long-term uranium price of USD$40/lb, and a USD$/CAD$ exchange rate of 0.80.  The mineral reserves are based on the block model generated for the January 30, 2018 mineral resource estimate.  The cut-off grade is based on an operating cost of CAD$574/tonne, milling recovery of 97%, and 7.25% fee for Saskatchewan royalties; 

(5)

Mineral reserves include diluting material and mining losses;

(6)

Mineral reserves are stated at a processing plant feed reference point;

(7)

Numbers may not add due to rounding.

  • Indicated Mineral Resources (inclusive of Reserves) of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8); plus
  • Inferred Mineral Resources of 3.0 million pounds U3O8 (82,000 tonnes at an average grade of 1.7% U3O8).

The PFS does not include any economic analysis based on estimated Inferred Mineral Resources.

The project is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (“JCU”) (10%).

Qualified Persons

The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.

The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.

For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.

About Denison

Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90.0% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.

Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.

Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and / or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in, the PFS, including future development methods and plans, market prices, costs and capital expenditures; the Company’s current plans with respect to the commencement and completion of an EA and feasibility study on the project; assumptions regarding Denison’s ability to obtain all necessary regulatory approvals to commence development; Denison’s percentage interest in its projects and its agreements with its joint venture partners; and the availability of services to be provided by third parties. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future. 

Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the inability to permit or develop the project as currently planned, the unpredictability of market prices, the use of mining methods which are novel and untested in the AthabascaBasin, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the “Risk Factors” in Denison’s Annual Information Form dated March 27, 2018 available under its profile at www.sedar.com and its Form 40-F available at www.sec.gov/edgar.shtml. These factors are not, and should not be construed as being exhaustive.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.

Cision
Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/denison-announces-filing-of-technical-report-for-wheeler-river-pfs-300740885.html

Categories
Base Metals Energy

URANIUM | Denison Announces Completion of Transaction to Increase Interest in the Wheeler River Uranium Project to 90%

TORONTO, Oct. 29, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML.TO) (NYSE American: DNN) is pleased to announce that it has completed the previously announced transaction (the “Transaction”) with Cameco Corporation (“Cameco”), whereby Denison has acquired all of Cameco’s minority interest in the Wheeler River Uranium Project (“Wheeler River” or the “Project”). Denison now holds a 90% participating interest in the Project (directly and indirectly through its subsidiary Denison Mines Inc.).

Denison’s joint venture partner in the Project, JCU (Canada) Exploration Company Limited (“JCU”), waived its right of first refusal to pro rata participation in the Transaction, and retained its 10% participating interest in the Project.

Denison acquired Cameco’s approximately 24% interest in the Wheeler River Joint Venture, in exchange for the issuance of 24,615,000 common shares of Denison, representing approximately 4.2% of the Company’s issued and outstanding common shares.

About Wheeler River

Wheeler River is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, in northern Saskatchewan – including combined Indicated Mineral Resources of 132.1 million pounds U3O8 at an average grade of 3.3% U3O8, plus combined Inferred Mineral Resources of 3.0 million pounds U3O8 at an average grade of 1.7% U3O8. The project is host to the high-grade Phoenix and Gryphon uranium deposits (discovered by Denison in 2008 and 2014, respectively), and is a joint venture between Denison (90% and operator) and JCU (10%). 

A Pre-Feasibility Study (“PFS”) was completed, considering the potential economic merit of co-developing the high-grade Gryphon and Phoenix deposits, the results of which were announced on September 24, 2018. Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The PFS is prepared on a project (100% ownership) and pre-tax basis, as each of the partners to the Wheeler River Joint Venture (“WRJV”) are subject to different tax and other obligations. Additional scientific and technical information relevant to the PFS, as well as after-tax results attributable to Denison’s ownership interest, are described in greater detail in the September 24, 2018 press release announcing the results of the PFS.  A NI 43-101 technical report supporting the PFS results is in the process of being finalized and will be filed under Denison’s profile on SEDAR within 45 days of the initial press release.

The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.

Further details regarding the Wheeler River project are provided in the NI 43-101 Technical Report for the Wheeler River project titled “Technical Report with an Updated Resource Estimate for the Wheeler River Property, Northern Saskatchewan, Canada” dated March 15, 2018 with an effective date of March 9, 2018.   A copy of this report is available on Denison’s website and under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.  

The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.

For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.

About Denison

Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.

Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and/or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the following: Denison’s percentage interest in its properties and its plans and agreements with its joint venture partners; the interests of JCU and its rights under the terms of the Wheeler River JV; estimates of Denison’s mineral resources; the results of its PFS assessing the potential for project development; and outlook for the industry and uranium mining in the Athabasca Basin.  Statements relating to “mineral reserves” or “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future.

Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Denison to be materially different from those expressed or implied by forward-looking statements. Denison believes that the expectations reflected in this forward-looking information are reasonable but no assurance can be given that these expectations will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the factors discussed in Denison’s Annual Information Form dated March 27, 2018 under the heading “Risk Factors”.

These factors are not, and should not be construed as being exhaustive. Accordingly, readers should not place undue reliance on forward-looking statements.

The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison’s expectations except as otherwise required by applicable legislation.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: This press release may use the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.  United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

Cision
Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/denison-announces-completion-of-transaction-to-increase-interest-in-the-wheeler-river-uranium-project-to-90-300739046.html

Categories
Base Metals Energy Project Generators

PROJECT GENERATOR | Fission 3 Grants Stock Options

TSX VENTURE SYMBOL: FUU
KELOWNA, BC , Oct. 25, 2018 /CNW/ – Fission 3.0 Corp. (“Fission 3” or the “Company“) announces that it has granted incentive stock options (the “Options“) to Directors, Officers, employees and consultants entitling them to purchase up to 8,100,000 shares in the capital of the Company subject to the policies of the TSX Venture Exchange. The Options are exercisable until October 25, 2023 at a price of $0.19 per share. The Options were granted in accordance with the Company’s Stock Option Plan approved by the shareholders on December 14, 2017 . The Options will vest as follows: 1/3 on the October 25, 2018 and 1/6 will vest every six months thereafter, until all Options have vested.
About Fission 3.0 Corp.
Fission 3.0 Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia . That Company’s common shares are listed on the TSX Venture Exchange under the symbol “FUU.”
ON BEHALF OF THE BOARD
“Dev Randhawa”
Dev Randhawa, CEO
Fission 3.0 Corp.
Cautionary Statement: Fission 3.0 Corp.
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fission 3.0 Corp. which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and Fission 3.0 Corp. disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Fission 3.0 Corp.

View original content: http://www.newswire.ca/en/releases/archive/October2018/25/c6982.html

Categories
Energy

ENERGY | DNI Metals Update – New Madagascar Team

TORONTO, ON / ACCESSWIRE / October 24, 2018 / DNI Metals Inc. (CSE: DNI; OTC PINK: DNMKF) (“DNI” or the “Company”).
New Madagascar Team
DNI has terminated its relationships with Steven Goertz, previously DNI’s country manager, and his team. Dan Weir, the CEO of DNI, is taking charge of all of DNI’s Madagascar operations which includes, but is not limited to, obtaining the environmental licenses for its Vohitsara and Marofody properties. Mr. Weir is putting together a new team, which will include inhouse legal counsel, government relations personal, an office manager and an accountant.
As DNI constructs its pilot plant and ultimately larger scale production, additional team members will be required.
Upgraded OTC Listing
DNI has been approved to upgrade to a QB quotation on the OTC markets in the USA.
DNI applied to have its shares trade on the OTCQB because some DNI investors found it difficult to trade our stock, particularly through discount brokers.
The OTCQB Venture Market offers early stage and developing international companies the benefits of being publicly traded in the U.S. with lower cost and complexity than a U.S. exchange listing.
According to the OTC, the key benefits a quotation on the OTCQB are:
Efficient Market Standards: Companies may leverage their local market disclosure (SEC Exchange Act Rule 12g3-2(b)). There are no Sarbanes-Oxley and SEC Reporting requirements to trade on OTCQB, bypassing burdensome, costly and duplicative NYSE and NASDAQ listing requirements.
Transparency: OTCQB is recognized by the SEC as an established public market. OTCQB companies provide current company information and meet financial standards that enable brokers to more easily quote and trade a security.
Visibility: Companies engage a far greater network of U.S. investors, data distributors and media partners, ensuring U.S. investors have access to the same high-quality information that is available to investors in their local market, but through U.S. platforms and portals used to conduct research.
New Mauritian Companies
DNI has completed the process of forming two Mauritian companies, DNI Mauritius Vohitsara and DNI Mauritius Marofody in which the ownership of DNI’s Malagasy subsidiaries, will be transferred to the Mauritian entities.
The benefits are twofold:

  1. Mauritius and Madagascar have an Investment Promotion and Protection Agreement (“IPPA”) in place since late 2010. See details below.
  2. A double-taxation treaty is in force between Madagascar and Mauritius.

Mauritius Investment Promotion and Protection Agreements
While much of Mauritian success as a well‐established international financial center can be attributed to its continually expanding network of double taxation avoidance agreements (“DTAAs”), there is another significant advantage to investing through Mauritius. Mauritius has entered into Investment Promotion and Protection Agreements (“IPPAs”) with various African countries that, while less well‐known than DTAAs, are potentially of great importance to investors seeking to invest in the developing markets of Asia and Africa.
IPPAs are bilateral agreements between countries designed to promote and protect the interests of investors from one country in the territory of the country where the investment is being made. Among other things, IPPAs increase investor confidence by ensuring a fair and equitable protection of investments. Mauritius has concluded 34 IPPAs, of which 18 are in force. Each agreement provides the following guarantees to investors:

  1. Fair and equitable protection of investments
  2. Fair and equitable treatment of investments and returns of investors
  3. Free transfer of monies relating to investments and returns
  4. Non-expropriation guarantee – investments shall not be nationalized, expropriated or subjected to measures (having effects equivalent to nationalization or expropriation) except for public purposes, under due process of law, on a non‐ discriminatory basis and against prompt, adequate and effective compensation (which shall be made without delay, and be effectively realizable)
  5. Most favoured nation rule with respect to treatment of investments and compensation for losses (in case of war or armed conflict, revolution, a state of national emergency, revolt, insurrection or riot) – investors who, suffer losses in the territory of the other contracting party resulting from the following shall be accorded restitution or adequate compensation:
    1. Requisitioning of their property by the forces or authorities of the latter contracting party
    2. Destruction of their property by the forces or authorities of the latter contracting party, which was not caused in combat action or was not required by the necessity of the situation of the observance of any legal requirement.
  6. Provisions for settlement of disputes between investors and the contracting states.
  7. Provisions for settlement of disputes between contracting states.

Mauritius’ network of IPPAs with various African countries makes it an ideal investment platform. In these countries, there is often pressure to redistribute wealth to local indigenous populations, which have historically been both politically and economically disenfranchised. This has resulted in a perceived threat of nationalization of assets (such as mines and natural resources) in certain of these countries. In these circumstances, it is useful to invest via a country that has an IPPA with the relevant African country, in order to take advantage of the guarantees offered by the IPPA. Source: Conyers Dill & Pearman.
Madagascar and Mauritius entered into an IPAA titled: « Accord De Promotion et de Protection Réciproque des Investissements entre le Gouvernement de la République de Maurice et le Gouvernement de la République de Madagascar » on 06th April 2004. The IPAA was fully ratified by both countries at the end of 2010. This instrument utilises the International Centre for Settlement of Investment Disputes (ICSID) for dispute resolution. It has been proven to be an effective recourse for investors in Madagascar.
Environmental Licenses
DNI had been promised the environmental licenses would be completed early in 2018. DNI had been given receipts and documents to show that the licenses were progressing and that the fees had been paid. Through an ongoing investigation, the Office National pour l’Environnement Madagascar, ONE, has determined and informed DNI that the many of the receipts and documents were falsified, and that the fee payments had not been paid. In fact the Cahier d’Charge and the environmental impact study for Marofody had not been filed with the ONE.
DNI is now aware of what needs to be completed in order to obtain the licenses and is rectifying the situation.
DNI – CSE
DMNKF – OTC
Issued: 120,698,403
For further information, contact:
DNI Metals Inc. – Dan Weir, CEO 416-595-1195
DanWeir@dnimetals.com
Also visit www.dnimetals.com
Forward-looking Statements
This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: DNI Metals Inc.

Categories
Energy Oil & Gas

Oil & GAS | Oil Companies Ditch Permian for Oklahoma Plays

Original Source: https://energyandresourcesdigest.com/oil-companies-ditch-permian-oklahoma-plays-nfx-eog-scoop-stack-merge-score/
If you follow the oil markets as I do, you might have heard that the Permian Basin in West Texas is the most prolific oil basin in the U.S. But the Permian has a big problem.
Producers are unable to get any more oil out.
Yes, there’s plenty more oil there. But the Permian has run out of takeaway pipeline capacity.
New pipeline projects won’t be ready until 2020. That means producers have had to severely discount their Permian crude destined for Gulf Coast refineries. For instance, on September 4, WTI Midland oil traded a discount of $23.95 per barrel to Magellan East Houston oil.
Those discounts come right off of a producer’s bottom-line profits. If you’re an investor, think of it as coming right off of your share price.
Oklahoma producers don’t have those problems. Sooner State exploration and production companies are laughing all the way to Cushing, Oklahoma.
Today there are several major oil plays in Oklahoma, referred to as the SCOOP, STACK, SCORE and Merge plays.
The STACK play acronym comes from the Sooner Trend oil field, Anadarko Basin, and Canadian and Kingfisher counties. Unlike the Granite Wash, Eagle Ford or Bakken, STACK isn’t a geological formation but a geographic area.
The SCOOP (South Central Oklahoma Oil Province) play is a geological formation. It’s also located in the Anadarko Basin.
The SCORE (Sycamore, Caney, Osage Resource Expansion) play is the sole idea of Newfield Exploration. Steve Campbell, a senior VP at Newfield, said Newfield was currently leasing 350,000 acres in the Anadarko Basin.
“It is the equivalent of 1 million net effective acres when all the multiple stacked horizons are considered,” he said. Newfield plans to invest $365 million to further delineate its SCORE acreage and different play levels.
Lastly, the Merge play is where STACK and SCOOP come together – hence “merge.”

Pipelines in the Right Places

Unlike West Texas’ pipeline-limited Permian, Oklahoma pipeline companies are staying ahead of producer capacity demand. They are doing this in the face of initial production rates that are similar to those in the Eagle Ford and Permian plays.
Since 2013, Oklahoma producers have invested in higher production well completions. They are also focused on the core acreage in the Oklahoma plays. That has resulted in a 70% increase in initial production rates.
Currently there are 139 rigs operating in Oklahoma. Most of them are in the SCOOP and STACK formations. And I think we’re going to see rapid growth in Oklahoma’s other plays as well.
Producers with acreage in the SCOOP, STACK, SCORE and Merge plays will begin to shift drill rigs there from the backlogged Permian.
Both Newfield Exploration Co. (NYSE: NFX) and EOG Resources Inc. (NYSE: EOG) are a great way to play the growing oil boom in Oklahoma.
Good investing,
Dave

Categories
Energy

URANIUM | U3O8 Corp. Announces Closing of Up-Sized Non-Brokered Private Placement, Securities for Debt Transaction and Amendments to Warrant Terms

Toronto, Ontario–(Newsfile Corp. – October 22, 2018) –  U3O8 Corp. (TSX: UWE) (OTCQB: UWEFF) (“U3O8 Corp.” or the “Company“) is pleased to announce that further to its news release dated October 1, 2018, it has completed its previously announced non-brokered private placement. Due to increased investor demand, the Company increased the size of the private placement to $573,500 from $400,000. The Company issued 2,294,000 units (“Units“) at a price of $0.25 per Unit, for total gross proceeds of $573,500 (the “Offering“).

Each Unit consists of one (1) common share in the capital stock of U3O8 Corp. (“Common Share“) and one (1) common share purchase warrant (“Warrant“). Each Warrant entitles the holder to purchase one Common Share at a price of $0.40 per Common Share until the date which is thirty-six (36) months following the closing date of the Offering, whereupon the Warrants will expire.

Proceeds of the Offering will be used for metallurgical test work on the Company’s Laguna Salada uranium-vanadium deposit in Argentina, for general corporate and administrative purposes, and to enable the Company to consider exercising its right to maintain its 39% holding in the private frac sand company, South American Silica Corp. (“SAS“), should SAS undertake a private placement in light of positive developments in the frac sand industry.

In connection with the Offering, the Company paid to certain eligible finders compensation consisting of cash commissions of $7,000 and 28,000 compensation warrants (“Broker Warrants“). The Broker Warrants will be exercisable into Common Shares of the Company at $0.40 and will be valid for a period of twenty-four (24) months from the date of closing of the Offering.

All securities issued and issuable pursuant to the Offering are subject to a four month and one day statutory hold period.

Closing of the Offering is subject to the receipt of all regulatory approvals, including the Toronto Stock Exchange.

Securities for Debt Transaction

The Company has agreed to settle outstanding cash debts in the amount of $51,500 to certain service providers and former employees (the “Creditors“) through the issuance of an aggregate of 206,000 Units at a price of $0.25 per Unit.

Additionally, the Company has agreed to settle $88,268 with the Creditors through the issuance of 304,371 common shares at a price of $0.29 per common share (the “Debt Shares“) (together, the issuance of the Units and Debt Shares to Creditors, the “DebtSecurities“).

The issuance of the Debt Securities is subject to the receipt of all applicable regulatory approvals, including the Toronto Stock Exchange. The Company is choosing to settle the outstanding indebtedness through the issuance of the Debt Securities as the Company will require cash for working capital and continuing operations.

The Debt Securities and securities issuable thereunder are subject to a four month and one day statutory hold period.

Related Party Transactions

Dr. Richard Spencer (CEO of the Company) and Mr. John Ross (CFO of the Company) participated in the Offering (the “Insider Participation“) and their participation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101“).

Dr. Spencer acquired 140,000 Units for proceeds of $35,000 and Mr. Ross acquired 140,000 Units for proceeds of $35,000.

In the absence of exemptions, the Company is required to obtain a formal valuation for, and minority shareholder approval of, the related party transaction. The related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of the Company’s market capitalization.

U.S. Registration

The securities offered pursuant to the Offering and the issuance of the Debt Shares have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Warrant Extension and Amendment

The Company and holders of 759,250 common share purchase warrants (“Original Warrants“) issued pursusant to a previous private placement have agreed to extend the expiry date and amend the exercise price of the Original Warrants.The Original Warrants will expire twelve months from the original expiry date and be exercisable into a common share of the Company at $0.50, as depicted in the table below:

Issue Date Issued Exercise
Price		 Original
Expiry
Date		 Amended
Expiry
Date		 Amended Exercise
Price		 Effective Date Original # of Warrants Issued
November 3,
2015		 $0.70 November 3, 2018 November 3, 2019 $0.50 November 3, 2018 759,250

None of the Original Warrants are held by insiders of the Company.

The Toronto Stock Exchange has provided conditional approval for the extension of the expiry date and amended exercise price with an effective date for the amendments of November 3, 2018.

About U3O8 Corp.

U3O8 Corp. is focused on exploration and development of deposits of uranium and battery commodities in South America. Battery commodities that occur with uranium resources include vanadium, nickel, zinc and phosphate. The Company’s mineral resources estimates were made in accordance with National Instrument 43-101, and are contained in the following deposits:

  • Laguna Salada Deposit, Argentina — a PEA shows that this near surface, free-digging uranium-vanadium deposit has low production-cost potential; and
  • Berlin Deposit, Colombia — a PEA shows that Berlin also has low-cost uranium production potential due to revenue that would be generated from by-products of phosphate, vanadium, nickel, rare earths (yttrium and neodymium) and other metals that occur within the deposit.

Additional Information

Information on U3O8 Corp., its resources and technical reports are available at www.u3o8corp.com and on SEDAR at www.sedar.com. Follow U3O8 Corp. on Facebook: www.facebook.com/u3o8corp, Twitter: www.twitter.com/u3o8corp and YouTube: www.youtube.com/u3o8corp.

For further information, please contact:

Carolina Diaz at carolina@u3o8corp.com or phone (416) 868-1491 or Richard Spencer, President & CEO, U3O8 Corp., Tel: (647) 292-0225 richard@u3o8corp.com

Forward-Looking Statements

This news release includes certain “forward looking statements” related with the development plans, economic potential and growth targets of U3O8 Corp’s projects. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or intensions for the future, and include, but not limited to, statements with respect to: (a) the low-cost and near-term development of Laguna Salada, (b) the Laguna Salada and Berlin PEAs, (c) the potential of the Kurupung district in Guyana and (d) the price and market for uranium. These statements are based on assumptions, including that: (i) actual results of our exploration, resource goals, metallurgical testing, economic studies and development activities will continue to be positive and proceed as planned, and assumptions in the Laguna Salada and Berlin PEAs prove to be accurate, (ii) requisite regulatory and governmental approvals will be received on a timely basis on terms acceptable to U3O8 Corp., (iii) economic, political and industry market conditions will be favourable, and (iv) financial markets and the market for uranium will improve for junior resource companies in the short-term. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements, including, but not limited to: (1) changes in general economic and financial market conditions, (2) changes in demand and prices for minerals, (3) the Company’s ability to establish appropriate joint venture partnerships, (4) litigation, regulatory, and legislative developments, dependence on regulatory approvals, and changes in environmental compliance requirements, community support and the political and economic climate, (5) the inherent uncertainties and speculative nature associated with exploration results, resource estimates, potential resource growth, future metallurgical test results, changes in project parameters as plans evolve, (6) competitive developments, (7) availability of future financing, (8) exploration risks, and other factors beyond the control of U3O8 Corp. including those factors set out in the “Risk Factors” in our Annual Information Form available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. U3O8 Corp. assumes no obligation to update such information, except as may be required by law. For more information on the above-noted PEAs, refer to the September 18, 2014 technical report titled “Preliminary Economic Assessment of the Laguna Salada Uranium-Vanadium Deposit, Chubut Province, Argentina” and the January 18, 2013 technical report titled “U3O8 Corp. Preliminary Economic Assessment on the Berlin Deposit, Colombia.”

Categories
Base Metals Energy Exclusive Interviews Precious Metals

SPROTT’S THOUGHTS | Stock Bull Cautions — “Always Know Where The Exits Are”

Stock Bull Cautions — “Always Know Where The Exits Are”

Oct 17, 2018 01:37 pm
By Albert Lu, President & CEO, Sprott Media
 

Watch the Video

Subscribe here to access Sprott Media video content
 
Don Luskin likes what he sees. The economy, he says, is strong and poised for growth. The tax cuts are working, particularly in the small cap segment. Furthermore, the President’s approach to trade negotiations is sound.
In short, Keynesian animal spirits for risk are back and the future looks bright.
But, he adds, “Don’t be an idiot about it. Like in a plane, you always want to know where the exits are.”
The Chief Investment Officer of Trend Macrolytics recently visited our Southern California studio for a wide-ranging discussion on politics, central banks, trade wars and markets. It was my first opportunity to sit down with the author and columnist, who is also a regular on Fox Business Network.
For starters, there is no mistaking it: Luskin is an uncompromising stock bull. The economy, he insists, “… is in a cusp period, where the world has the potential to get out of the era of secular stagnation, and the new normal, and get back to growth rates and productivity rates that look like the old normal.”
He is also not shy about his support of the President’s economic policy and, in particular, tough stance on China and trade. “China is interfering with free trade more than we are,” he explains.
In Luskin’s assessment, the pros of Trump’s tough stance outweigh the cons, even if the tactic means higher consumer prices for Americans. “[Free trade is] the morally right thing to do,” he adds.
Yet, despite his unwavering optimism, when pressed, Luskin concedes that diversification is a worthy end in itself. Don’t be an idiot about it — remember the plane analogy?
But what if the nearest exit is behind you — like at Dow 26,000?
“Believe me … I own lots of gold,” he admits. “I also have lots of guns and ammunition … and penicillin.”
After all, what good is an exit without a parachute?
To watch the video interview with Donald Luskin, chief investment officer of Trend Macrolytics, click here.
To download the Trend Macro special report, “One Sell-Off, So Many Causes” click here (pdf)
Read in browser »
share on Twitter Like Stock Bull Cautions — “Always Know Where The Exits Are” on Facebook

Recent Articles:
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”.
The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.
Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment.  Because of significant volatility,  large dealer spreads and very limited market liquidity, typically you will  not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
Copyright © 2018 Sprott US Media, All rights reserved.
You are receiving this email because you requested information about the Sprott Group.
Our mailing address is:

Sprott US Media

1910 Palomar Point Way Ste 200

Carlsbad, CA 92008-5578