Uranium
800-pound gorillas can eat a whole lot of yellowcake. As the market remains completely placated towards uranium, with low
price volatility, mostly discretionary buying in the spot market, and little in the way of potential catalysts, companies
are executing potentially impactful strategic moves largely unnoticed. However, just because the market has lost its craving for
yellowcake at the moment, longer-term fundamentals support renewed interest in the commodity and companies continue to
work behind the scenes, positioning themselves for the greatest gain when the market’s appetite returns. So the question is, who
zoomin’ whom? Paladin Energy (PDN) caught Uranium One (UUU) with its hand in the cookie jar last week. In analyzing
its share registry, Paladin noticed that a wholly-owned subsidiary of Uranium One had acquired a small but growing position in
its stock. Uranium One later confirmed the position, stating that it was for investment purposes. Canaccord Adams has stated a
number of times that consolidation among the cashed-up producers was inevitable, and one could argue that these savvy
uranium players also know a spot uranium market bottom when they see one. Speaking of consolidation, Solex Resources
Resources’ (SOX) shareholders approved the deal whereby Solex is buying $4 million cash, 7.6 million shares of Macusani
Yellowknife (YEL) plus other rights for 81.7 million shares and control from Homeland Uranium (private). Shareholders also
approved a subsequent name change and 3:1 share consolidation. The move is expected to end up with consolidation of this
intriguing uranium play controlled by Solex and Macusani Yellowknife in the Macusani region, Peru.