Wednesday, January 31, 2007
Strathmore plans to spin off Canadian properties
The reorganization is designed to improve the identification and valuation of specific Strathmore properties, to enhance Strathmore's ability to divest specific properties through simpler corporate ownership, to enter into strategic joint venture agreements, and to enable Strathmore to separately finance and develop its various assets, selectively reducing stock dilution.This requires 2/3 of a vote at a special meeting. I say, "Sure, why not?"
My guess is that this comes at the request of current or potential shareholders. Sprott Asset Management comes to mind. It could boost the overall market price if various shareholders prefer one and not the other. The US properties would include Roca Honda and Church Rock and a lot of other stuff that would go into production within the next 10 years. The Canadian stuff would be either further out for investors focused on very long term prospects or perhaps a takeover target (e.g. throw it overboard and let the sharks fight over it).
Overall, I view this as a mildly good thing.
UPDATE Feb 1, 2007:
UxC reports that the spot price of uranium is now $75, up from $72.