Canadian uranium company Nexgen mulls eventual stake sale as stock gains
By Rod Nickel
(Reuters) - Nexgen Energy Ltd NXE.V, a Canadian uranium exploration company whose stock rocketed 79 percent this month, is talking with multiple uranium producers and buyers about selling a minority stake, its chief executive said on Thursday.
But the Vancouver-based company does not plan to add a partner before next year, said Chief Executive Officer Leigh Curyer, a former executive with Uranium One Investments Inc.
"We're unique for an exploration company - the executives and board all have large-company experience," Curyer said in a phone interview from San Francisco. "We know where we're going."
Mining explorers typically develop projects until sometime before construction, when major producers with greater capital and expertise take them over.
Potential strategic investors have expressed interest since 2014, but their enthusiasm spiked this month, Curyer said. The company estimated on March 3 an initial resource at its Arrow deposit in northern Saskatchewan of 202 million pounds, much larger and higher-grade than expected.
That size would make Arrow the third-largest deposit in Canada's rich Athabasca basin after two Cameco Corp (CCO.TO: Quote) mines. It does not include 2016 drilling results, which have also impressed.
Nexgen has entered non-disclosure agreements with interested parties, but there is no hurry taking a partner, Curyer said.
The company has C$35 million ($26.93 million) in cash, enough to fund itself to mid-2017. Continued...