To the shareholders of Consolidated Uranium:
As we begin 2021, I wanted to take a moment to reflect on our Company’s achievements over the past year and set out our objectives for the upcoming year and beyond.
- Uranium Market Resurgence
At Consolidated Uranium, we subscribe to the view that uranium prices, both spot and long term, are likely to move higher as the current price level is insufficient to support existing production or restart idle capacity let alone new mine development. At the same time, the outlook for nuclear power, the driver for uranium demand, is strong with reactor build programs advancing around the world and nuclear becoming a more prominent part of the low carbon power generation narrative.
This confluence of a potential uranium supply crunch with growing demand for nuclear power could be the perfect storm for the uranium sector this year and comes on the heels of a prolonged bear market where exploration and development spending has been steadily declining.
- Proven Business Model
- Highly Experienced Team
- Compelling Portfolio of Initial Acquisitions
Our initial portfolio checks a lot of boxes with options on projects in two of the top uranium producing jurisdictions in the world (Canada and Australia), having economic studies completed by previous operators (Ben Lomond and Laguna Salada), having shown grade potential in excess of the global average (Ben Lomond and Mountain Lake), containing vanadium as a by-product which may enhance economic extraction potential (Moran Lake and Laguna Salada) and, in aggregate, having prior expenditures of over $75m. Below is a brief snapshot of each project option we signed in 2020.
- Compelling Future Ahead
Our ability to complete future transactions has been enhanced by our successful financings that were completed last year. In total, the Company raised gross proceeds of approximately $9.7m in 2020 and completed the year with sufficient cash on hand to fund near term expenditures and pursue additional opportunities. Importantly, the bulk of those funds were raised from sophisticated and institutional investors including investment funds with a specific mandate to invest in uranium companies. Through their investment, these funds have endorsed our team and model and, we believe, will be there to support the future growth of the Company. In order to further strengthen our ability to access capital for future opportunities, a large part of our focus this year will be to broaden investor awareness, both to retail investors and to the institutional community.
In closing, I would highlight that while 2020 was a tremendous year for the Company, as we executed successfully on all tenets of our new business plan, we feel confident that we are still in the initial stages of building out the Consolidated Uranium portfolio and ultimate value.
I would like to thank all our existing shareholders for supporting and joining us on this journey.
Philip Williams, Chairman and Chief Executive Officer
About International Consolidated Uranium
International Consolidated Uranium Inc. (formally, NxGold Ltd.) is a Vancouver-based exploration and development company. The Company has entered option agreements to acquire five uranium projects in Australia, Canada and Argentina each with significant past expenditures and attractive characteristics for development: with Mega Uranium Ltd. (TSX: MGA), the right to acquire a 100% interest in the Ben Lomond and Georgetown uranium projects in Australia; with IsoEnergy Ltd. (TSXV: ISO), the right to acquire a 100% interest in the Mountain Lake uranium project in Nunavut, Canada; with a private individual, the right to acquire a 100% interest in the Moran Lake uranium and vanadium project in Labrador, Canada; and with U3O8 Corp. (TSXV: UWE.H), the right to acquire a 100% interest in the Laguna Salada uranium and vanadium project in Argentina. The Company entered into the Mountain lake option agreement with IsoEnergy on July 16, 2020, and the transaction remains subject to regulatory approval, as does the transaction with U3O8 Corp. on the Laguna Salada Project.
In addition, the Company owns 80% of the Mt. Roe gold project located in the Pilbara region of Western Australia and an equity interest in Meliadine Gold Ltd., the owner of the Kuulu Gold Project (formerly known as the Peter Lake Gold Project) in Nunavut.
President, CEO & Chairman
International Consolidated Uranium Inc.
+1 778 383 3057
Swiss Resource Capital AG
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Cautionary Statement Regarding “Forward-Looking” Information
This letter contains "forward-looking information" within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including future financial results, investment strategies, goals, plans, business opportunities and ability to create value for shareholders, as well as market and industry trends and growth opportunities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Such forward-looking information and statements are based on numerous assumptions, including that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third-party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, and risks generally associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals. Such risks and uncertainties are set out under the heading “Risk Factors” in the Company’s Management’s Discussion and Analysis for the financial year ended December 31, 2019, available under the Company’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR).
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
The scientific and technical information contained in this news release was reviewed and approved by Peter Mullens (FAusIMM), the Company’s VP, Business Development who is a “Qualified Person” (as defined in NI 43-101 – Standards of Disclosure for Mineral Projects).