Historically, consolidating sectors in bear markets is an excellent plan.

But few companies are able to achieve it because they typically have limited cash at the bottom of the market cycle.

The team at Lumina Copper, led by Ross Beatty, was notably among the best.

It acquired several copper projects in the early-2000s for about $175 million. And by 2005, it split itself into four companies. The total return of those projects was over $1.5 billion to shareholders.

From 2002 to 2008, copper soared 500%.

As you can imagine, with that kind of tailwind, high-quality copper projects soared in value… taking stock prices along with it.

Today, there’s a new analogue — and company — to that copper opportunity: Consolidated Uranium Inc.

From January 2005 to December 2006, Mega Uranium followed this model of consolidating assets. It raised C$50 million and acquired nine projects. Its market cap went from C$15 million to C$940 million — a 60X increase.

Several other uranium companies — such as Paladin Energy, Energy Metals, and Uranium One — had success with the same consolidation model as well.

Today, uranium prices are staging something similar to the aforementioned copper rally with a solid move from US$30 to US$50 per pound with tons of runway left.

The top-emerging junior currently deploying the consolidation model to the benefit of early shareholders is none other than Consolidated Uranium Inc. (TSX-V: CUR)(OTC: CURUF).

Consolidated Uranium took a page from Lumina Copper’s playbook. They’ve collected a fantastic uranium portfolio that they can develop and/or joint venture at a profit for the next decade.

Here’s why…

Alternative Energy is Great Until It Doesn’t Work

Coal is all but dead. And filling its gap in electric power will create huge opportunities for well-positioned investors.

For the past 100 years, coal-fired power plants supplied a critical part of the world’s electricity. These plants never shut down. They just percolated in the background, generating power 24 hours a day.

That’s called “baseload” power. Without it, you end up with brownouts or full outages.

As governments around the world closed those coal plants, they replaced them with alternative power like wind and solar.

Those sources don’t supply baseload power. So the frequency of weather-related outages jumped.

It happened to England in June 2018 when the winds dropped to nothing for two weeks. At the time, the country only generated 4% of its power from wind turbines. But that loss drove power prices to decade highs… because they didn’t have enough.

During ideal conditions, those wind turbines can produce the electrical power equal to twelve nuclear power plants. But not when it’s calm.

It happened again in November 2020. Calm weather created a problem for the grid. It fell 1.5% short of demand. As noted by Ellen Wald in her essay in Forbes:

“National Grid was forecasting a shortfall of 740 MW (1.5%) in the extra power plant capacity it needs to have available at all times to meet demand or pick up slack in the event a power plant breaks down. It is important to note that this happened at the beginning of November, not in the heat of summer when air conditioning can strain grids or an abnormally long cold snap in the winter. No, this was not caused by overburdening the grid but by overreliance on unreliable alternative energies.”

It happened again in the US over Valentine’s day weekend in 2021. A huge blizzard froze wind turbines across the state of Texas. Two million customers lost power.

It stressed the state’s power grid so badly that customers who didn’t lose power faced rolling blackouts for the first time in a decade.

Utilities cut 10.5 gigawatts of power demand to ease strain on the power grid throughout the state.

We expect these events to begin a nuclear power renaissance around the world.

Power outages aren’t acceptable in today’s online world.

Wind, solar, and hydro power are all great. But they each have a significant flaw: calm, night, and drought, respectively. As a society, we need power all the time — not just when conditions are optimal.

That’s one of the biggest problems for carbon-free power sources. If you rely only on wind and solar, you will fall short at times. The clients end up paying more for the power and it can damage the power grid.

Renewables are going to be a large part of the future to be sure. But they need a baseload counterpart… an energy source that can stay on all the time with zero emissions.

Fortunately, there is a carbon-free answer: new nuclear power plants and SMRs.

China, Japan, India, South Korea, and even the US are now fully onboard with a cleaner energy future that will require vast amounts of uranium.

In fact, China just confirmed its intent to build 150 new nuclear reactors over the next 15 years as part of their newly-enhanced decarbonization mandate. That's more reactors than have been built in the last 35 years!

France also just announced they’re going to be building a new generation of nuclear reactors for the first time in decades.

And there’s also the advent of Small Modular Reactors — or SMRs — right here in America.

SMRs offer key advantages over traditional reactors such as relatively small physical footprints, reduced capital investment, ability to be sited in locations not possible for larger nuclear plants, and provisions for incremental power additions.

In other words, strong tailwinds are forming for the uranium sector at large.

However, there’s a problem with fuel for those new reactors. The uranium price cratered in 2011 following the Fukushima Daiichi disaster in Japan. An earthquake followed by a tsunami devastated the nuclear power infrastructure there.

As you can see, the price of uranium fell about 75% from 2011 to 2017 before starting to recover.

That collapse created many orphaned uranium projects.

But it also left many excellent projects selling for just pennies on the dollar.

That’s where Consolidated Uranium (TSX-V: CUR)(OTC: CURUF) took full advantage by securing a globally diversified portfolio of uranium exploration and development projects at a time when few others were looking.

For speculators, the important thing to keep in mind is that the uranium sector is highly cyclical in nature.

And with uranium currently enjoying its first major resurgence since post-Fukushima-2011, the annual supply-demand gap — which currently stands at 20 million pounds U3O8 — points to a highly bullish scenario for uranium prices going forward.

What we’re looking for next is for the major US utilities to come in and start purchasing U3O8 contracts at higher uranium prices.

That entry will kick off what many experts believe will be a swift and sustainable uranium price move from the current $50/lb range to $75/lb and perhaps even higher.

Once that happens, those select few well-positioned uranium juniors like Consolidated Uranium could see their respective share values rise in dramatic fashion.

In fact, we’re already beginning to see the early stages of that projected value increase as demonstrated by the 12-month chart (below) for Consolidated Uranium.

The key for investors is owning select, top-quality uranium names at the early stages of uranium’s resurgence — just like what we witnessed in 2007 when U3O8 prices rocketed to $140 per pound… bringing the vast majority of North American uranium companies along for the ride.

Fasten your seatbelts… because the new uranium bull market is here… and Consolidated Uranium is next!

Consolidated Uranium
(TSX-V: CUR)(OTC: CURUF)

Deploying a Proven Method in a Rising Sector

Consolidated Uranium is a sub-C$200 million market cap junior uranium mining firm.

The company has a tight share structure with just over 60 million shares outstanding and has cash and equivalents of over C$25 million and no debt.

Two important uranium companies — Mega Uranium and Energy Fuels — own 4.2% and 19.9% of CUR shares, respectively. Management and insiders own another 5%. Institutions like Sachem Cove and Segra Capital own another 36%.

This junior packs a big punch in leadership. Its founders are the same team behind NexGen Energy (NYSE: NXE)(TSX: NXE) and Mega Uranium (TSX: MGA)(OTC: MGAFF). Mind you, NexGen is a US$2.5 billion uranium company.

Strategic Alliance with Energy Fuels

In Q4 2021, Consolidated Uranium announced a key alliance with Energy Fuels Inc. (NYSE-Amer: UUUU)(TSX: EFR).

As part of this landmark agreement, CUR has acquired a portfolio of conventional uranium mine projects located in Utah and Colorado.

The acquisition — which includes the permitted and past-producing Tony M, Daneros, and Rim mines, Utah — establishes CUR as a new player in the US uranium sector:

Tony M Mine: Located in the Henry Mountains area of southeastern Utah, the project is a large-scale, fully developed and permitted underground mine that operated most recently in 2008.

Daneros Mine: Located in the White Canyon district, the project is a fully developed and permitted underground mine that was most recently in production in 2013.

Rim Mine: Located in the East Canyon portion of the Uravan mineral belt, the project is a fully developed and permitted underground mine that was most recently in production in 2009.

These past-producers are the immediate focus for CUR.

All three mines are currently on stand-by, ready for rapid restart as market conditions permit — thereby positioning CUR as a potential near-term US uranium producer.

Ore is to be processed at Energy Fuels’ White Mesa Uranium Mill, Utah — the only conventional uranium mill operating in the United States today.

Importantly, as part of the alliance, Energy Fuels will continue to have significant skin-in-the-game via a robust ownership stake in CUR to the tune of 19.9%.

That means they have a vested interest in seeing these mines up and running again in this new era of higher uranium prices.

And remember — after dominating the uranium space in the ‘60s, ‘70s and ‘80s — the United States currently produces almost zero uranium… so these past-producing mines may soon prove vital to America’s U3O8 production resurgence.

Our exclusive interview with Consolidated Uranium CEO, Philip Williams, is coming right up. In regard to the Energy Fuels alliance, he had this to say:

“This is a seminal moment for Consolidated Uranium. With the closing of this acquisition and entering into of the toll-milling and operating agreements, CUR is firmly established as a U.S. uranium player with near term production potential from a portfolio of past producing mines with a clear pathway to production from guaranteed access to the White Mesa Mill. We have been very busy in the background putting plans in place to accelerate development of these projects and look forward to updating the market on that plan in due course…”

The alliance also brings with it the appointment of Energy Fuels president & CEO, Mark Chalmers, to the CUR board. Mr. Chalmers added:

CUR shareholders can expect a steady stream of news flow from these projects in the coming quarters.

Labrador Uranium Spinout

Consolidated Uranium is in the final stages of spinning out Labrador Uranium, which is focused on the consolidation, exploration, and development of uranium projects in Labrador, Canada.

As part of the transaction, Labrador Uranium will be raising up to C$8 million via private placement with Red Cloud Securities acting as lead agent.

In alignment with the proposed spinout, CUR has provided notice to exercise its option pursuant to the previously announced agreement to acquire 100% of the Moran Lake Uranium-Vanadium Project, which it will then transfer to LUR in exchange for 16 million LUR shares.

In addition, CUR and LUR have entered into a purchase agreement with Altius Resources Inc., pursuant to which LUR has agreed to acquire, from Altius, a 100% interest in the Central Mineral Belt Uranium-Copper Project and the Notakwanon Uranium Project — both located in Labrador.

Philip Williams, CEO, added:

“We are pleased to be announcing the partnership with Altius in the formation of Labrador Uranium. We believe that the Central Mineral Belt is an important uranium camp in Canada, which has tremendous exploration potential for uranium and other metals. As CUR focuses on near-term production in the United States, we determined that repositioning the Moran Lake Project as a part of a larger, Labrador-focused exploration portfolio would be the best way to unlock value for our shareholders. We liken this transaction to the original IPO of Aurora Energy in 2006 whose main asset was the Michelin Project. That company garnered a peak market cap of over $1.3b in 2007 and was ultimately taken over by Paladin Energy in 2011.”

Again, one of the primary drivers of the consolidation process is the strategy of maintaining significant skin-in-the game. And CUR has done this perfectly with its significant ownership stake in Labrador Uranium.

Additionally, Labrador Uranium will be adding the Mustang Lake Uranium Project to its portfolio of targets within the Central Mineral Belt of Labrador, Canada, by acquiring Mega Uranium’s 66% participation interest in the project.

The Mustang Lake project is situated along-strike to Paladin Energy’s existing Michelin deposit and aligns LUR with Mega Uranium’s exceptional team of uranium developers in the district.

Matoush Uranium Project Acquisition

In Q2 2021, Consolidated Uranium acquired 100% of the high-grade Matoush Uranium Project located in Quebec, Canada. Matoush is considered an advanced-stage exploration project (413 mining claims; 217 sq km) with a substantial high-grade historic resource of:

• 586,000 tonnes Indicated at an average grade of 0.95% U3O8 containing 12.3 million lbs of U3O8

• 1,686,000 tonnes Inferred at an average grade of 0.44% U3O8 containing 16.44 million lbs of U3O8

The Matoush acquisition adds to an impressive property portfolio for Consolidated Uranium.

Key Australian Assets

Consolidated Uranium has established a strong presence in Queensland, Australia, via a series of strategic acquisitions.

Milo Uranium-Copper-Gold-Rare Earth Project: The Milo deposit is a large breccia-style system characterized by occurrences of base and precious metals mineralization, including rare earth elements (REEs), which are very much in the news these days for their critical applications in the green-tech and defense-tech fields.

Ben Lomond Uranium-Molybdenum Project: The Ben Lomond deposit is estimated to contain 10.7 million lbs U3O8.

Georgetown Uranium Project: The Georgetown deposit is estimated to contain 6.33 million lbs U3O8.

Exclusive Interview with Consolidated Uranium CEO Philip Williams

Our own Gerardo Del Real of Junior Resource Monthly sat down with Consolidated Uranium CEO, Philip Williams, for an in-depth discussion on all-things CUR. Enjoy!

Consolidated Uranium Offers Lower Risk & Huge Upside Potential

Consolidated Uranium is far from a “grassroots” exploration company.

In fact, in its relatively brief trading history, CUR has amassed a large and diversified portfolio of uranium exploration and development projects that hold a significant amount of uranium plus other key metals.

It’s a company that was literally put together to capitalize on an anticipated uranium market resurgence using the proven model of diversified project consolidation.

That resurgence is happening now!

To date, Consolidated Uranium has acquired, or has the right to acquire, uranium projects in Australia, Canada, Argentina, and the United States — each with significant past expenditures and attractive characteristics for development.

Most recently, the company entered into a transformational alliance with Energy Fuels Inc. (NYSE-Amer: UUUU)(TSX: EFR) — a leading US-based uranium mining company — on the acquisition of a portfolio of permitted, past-producing conventional uranium and vanadium mines in Utah and Colorado.

Those mines are currently on stand-by, ready for rapid restart as market conditions permit, thereby positioning CUR as a potential near-term US uranium producer.

The company is in the final stages of spinning out Labrador Uranium, which is focused on the consolidation, exploration, and development of uranium projects in Labrador, Canada.

CUR is also advancing its newly-acquired Matoush Uranium Project located in Quebec, Canada, and its Milo, Ben Lomond, and Georgetown projects in Queensland, Australia.

Consolidated Uranium is the beneficiary of strong financial backing from Sachem Cove Partners and Segra Capital — perhaps the two best-known financial institutions in the worldwide uranium market.

Attractively priced relative to its peers, CUR is currently trading at an adjusted enterprise value/resource multiple of US$0.65/lb U3O8 which is a >40% discount to other uranium exploration and development companies with projects around the world.

With global demand for nuclear power sharply on the rise, Consolidated Uranium offers speculators exposure to uranium via its vast portfolio of exploration projects, strong leadership, and solid treasury with which to move projects forward.

Now is an excellent time to begin conducting your own due diligence on Consolidated Uranium Inc. — symbol CUR on the Toronto Venture Exchange and symbol CURUF on the US-OTC Bulletin Board Exchange.

A great place to start is the company’s corporate website.

And be sure to follow our exclusive interviews with upper management and much more.

— Resource Stock Digest Research